WELLINGTON (dpa-AFX) - Spark New Zealand Limited (SPK.AX), Monday announced a collaboration with financial services organization Challenger Limited to establish a new financing structure for the interest free payment or IFP plans to acquire mobile handsets and other accessories.
The IFP plans, offered by Spark, allows customers to conveniently purchase the latest devices and manage costs over time.
The collaboration is expected to reduce working capital carried on Spark's balance sheet and support the continued growth of IFP as a key acquisition and retention tool in the company's mobile business.
As per the terms of the deal, the company will sell eligible receivables from its existing IFP customers to Challenger for about $240 million, which will be utilized by Spark to reduce its net debt.
Additionally, the agreement includes an ongoing arrangement with Challenger to sell future IFP receivables on a regular basis.
Spark's stock closed at AUD 1.9450 on the Australia Stock Exchange.
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