British telecommunications company Vodafone Group Plc is planning to divest its New Zealand division for 3.4 billion New Zealand dollars ($2.2 billion).

Vodafone will sell its unit to a consortium consisting of New Zealander infrastructure investment company Infratil Ltd. and Canada’s Brookfield Asset Management to focus on the European markets.

The transaction, which is still contingent on regulatory approvals, is expected to close by August 31 and would help Vodafone reduce its credit.

On the closure of the move, Vodafone noted that it would enter into an agreement with Vodafone New Zealand to allow it to use the company's brand name and certain services.