Infratil announced to the NZX this morning, that it has agreed to purchase TECT’s 4.92% shareholding in Contact Energy Limited (Contact).
The purchase price of $437.7 million, or $8.95 per share, will see TECT receive a combination of $218.8 million in cash, and 17.6 million of new Infratil shares, priced at the $12.43 per share. The sale price represents a 0.7% discount to the 5 day average.
As you know, following the recent merger of Contact and Manawa Energy, TECT had received approximately $93.9 million in cash and 48.9M shares in Contact.
The Trustees believe this is a compelling transaction that will deliver significant value to, and have a positive impact on, our community. The increased liquidity as well as an exposure to a range of international and domestic infrastructure assets, will further diversify TECT’s investment portfolio.
TECT’s Chair, Mark Arundel, said:
“We’ve invested alongside Infratil in Trustpower & Manawa for more than 30 years and therefore have a long-standing history of working together. We know the Infratil team and their track record well, and we’re delighted to continue this relationship by becoming an Infratil shareholder and will benefit from diversification through their broader infrastructure portfolio.”
Infratil Chief Executive Jason Boyes said the transaction is a win-win for both parties.
“TECT’s decision to diversify created a natural opportunity for us to increase our investment in Contact. We appreciate TECT’s decision to remain invested in us through Infratil shares.”
For further information also see Infratil’s market announcement on the NZX at https://www.nzx.com/announcements/461007
