Is this the best New Zealand ASX share to buy?

Infratil Ltd (ASX:IFT) could be the best New Zealand-based ASX share to buy.

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New Zealand business Infratil Ltd (ASX: IFT) is an infrastructure investment company.

Today the company, with Brookfield Asset Management, has announced that it is going to acquire Vodafone New Zealand for an enterprise value of NZ$3.4 billion.

The idea behind the acquisition is that Vodafone is New Zealand's leading mobile telecommunications company and will improve its cash generation. It will increase Infratil's exposure to long-term data and connectivity growth and complements the acquisition of Canberra Data Centres.

Following the recently announced divestments of ANU student accommodation concession and NZ Bus, the simplified Infratil portfolio will be invested across renewable energy, data, retirement & aged care and airports.

Vodafone New Zealand is a large business with revenue of NZ$2 billion and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of NZ$463 million for the 12 months to 31 March 2019. Infratil said the implied acquisition value for FY20 forecast Underlying EBITDA multiple of 6.9x to 7.4x.

Infratil Chairman Mark Tume said "Telecommunications is critical infrastructure for New Zealand and Vodafone NZ is an integral part of everyday Kiwi life. The quality and availability of its networks have a direct bearing on New Zealand's competitiveness and future growth prospects. We are very excited to be a part of Vodafone NZ's next stage of development."

Some of the other reasons that Infratil decided to acquire Vodafone New Zealand are the extensive national infrastructure it owns, the fact it's a regulated business (creating barriers to entry) and that it fits well with Infratil's other investments.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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