Spark's fortunes and finances recently took a tumble, but the company's data centre business generated growth. Photo: RNZ / Kim Baker Wilson
Spark New Zealand says it is looking for buyers to take a stake in its data centre business.
The Australian Financial Review is reporting investment bank Jarden had been hired to seek buyers for a stake in the platform, which had up and running capacity of 22 megawatts and more than 118 MWs in development.
A price of $1.2 billion was suggested for a 50 percent stake.
Spark earlier this year said it would look to outside investors to fund $1 billion in future investment.
"No transaction has been agreed, and a transaction, including any potential transaction value, is not yet certain," Spark said in a statement to the market, adding it would keep the market updated in accordance with its continuous disclosure obligations.
Spark's fortunes and finances recently took a tumble with falling revenue and market share along with rising debt, which saw its shareprice halve over the past year.
However, the company's data centre business generated growth, with $25 million of revenue in the first half of the financial year, which compared with $22 million the year earlier, though costs doubled to $2 million from $1 million.
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