- Infratil (IFT) seeks to raise funds to acquire Brookfield Asset Management’s remaining 49.95 per cent stake in One New Zealand for NZ$1.8 billion (A$1.64 billion)
- The acquisition increases Infratil’s stake in One New Zealand to 99.9 per cent
- The equity raising includes a NZ$750 million underwritten placement and a NZ$100 million non-underwritten retail offer
- Following the completion of the acquisition and placement, Infratil’s wholly-owned group gearing is expected to sit at 18.7 per cent and will hold NZ$927.7 million in liquidity
- IFT shares are trading at $9.20 at 11:15 am AEST
Infratil (IFT) has acquired Brookfield Asset Management’s remaining 49.95 per cent stake in One New Zealand for NZ$1.8 billion (A$1.64 billion).
The purchase will upgrade the company’s stake in One New Zealand to 99.9 per cent, with the acquisition to be funded through an NZ$850 million equity raising.
The equity raising will comprise a NZ$750 million underwritten placement and a
NZ$100 million non-underwritten retail offer, along with cash reserves and debt facilities.
The placement will comprise the issue of 81.5 million new shares at NZ$9.20 per share, representing approximately 11.2 per cent of existing issued capital, to raise NZ$750 million.
The new shares represent a discount of 8.9 per cent to the last NZ stock market closing price on Tuesday, June 6 2023.
One NZ is a leading digital services and connectivity company with population coverage of more than 98 per cent throughout New Zealand, and following 2019, Infratil has been involved in the company’s ongoing development.
“Further investment in One NZ is strategically and financially compelling for Infratil and our shareholders,” Infratil CEO Jason Boyes said.
“One NZ has had strong momentum following the recent rebrand and other business transformation initiatives that are ongoing, with further upside to be realised.
Full control of One NZ provides a business plan and capital allocation flexibility and a renewed focus on long-term value creation.”
Following the completion of the equity raise and acquisition of One NZ, Infratil’s wholly-owned group gearing is expected to be 18.7 per cent and will hold NZ$927.7 million in liquidity.
IFT shares were trading at $9.20 at 11:15 am AEST