Crown fibre company takes first steps

Ministry of Economic Development seeks financial adviser for Crown Fibre Holdings

The Ministry of Economic Development is gearing up to create Crown Fibre Holdings (CFH), the new company that will manage the government's $1.5 billion fibre investment, issuing a tender yesterday seeking a financial advisor for the new entity. The services sought include assisting the evaluation of tender responses from prospective investment and network partners, assisting with financial due diligence on potential partners and providing specialist financial advice on matters relating to the establishment of Crown Fibre Holdings and its investment in local fibre companies. "This investment will be injected into one or more Local Fibre Companies (LFCs) in conjunction with one or more private partners," the tender says. "The LFCs will build, own and operate the FttP networks in their respective regions." The Ministry of Economic Development says it is issuing the tender ahead of the formal establishment of CFH, anticipating the company will have a need for some or all of the services. CFH is expected to be established by late October 2009. Iin particular, the advisor will deal with the financial and commercial elements of responses to the government's investment plan. "This may include provision of senior financial analysts who will work under the direction of CFH as a contracted resource," the tender says, along with advising on the appropriate cost-of-capital for LFCs. Ttax advice also features for both CFH and the LFCs as does provision of specialist advice on risk-sharing and the financial aspects of CFH’s agreements with LFCs and investment partners. The services do not include legal advice and or the negotiation of arrangements between CFH and private sector partners in relation to LFCs, the tender says.

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