Announcement
OFFER: IFT: Infratil announces NZ$400 million equity raising
08:30am
IFT
17/05/2019 08:30
OFFER
PRICE SENSITIVE
REL: 0830 HRS Infratil Limited
OFFER: IFT: Infratil announces NZ$400 million equity raising
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Infratil announces NZ$400 million equity raising to partially fund the
acquisition of Vodafone New Zealand
On 14 May 2019, a consortium owned by Infratil Limited ("Infratil") and
Brookfield Asset Management Inc. ("Brookfield") announced it had executed a
conditional agreement to acquire Vodafone New Zealand Limited ("Vodafone NZ")
from Vodafone Group Plc for an enterprise value of NZ$3.4 billion (the
"Acquisition") . The Acquisition value implies an enterprise value to FY2020F
Underlying EBITDA multiple of 6.9x - 7.4x and is expected to deliver strong
cash flow to support current and future growth opportunities.
The NZ$3.4 billion purchase price is to be funded via a NZ$1,029 million
equity contribution from each of Infratil and Brookfield, with the balance
funded from Vodafone NZ level debt and a portion of equity reserved for the
Vodafone NZ executive team.
Infratil's equity contribution will be partially funded via a fully
underwritten NZ$100 million institutional placement ("Placement") and a fully
underwritten NZ$300 million, 1 for 7.46 pro-rata accelerated renounceable
entitlement offer ("Entitlement Offer") (together, the "Equity Raising"). UBS
New Zealand Limited is acting as Sole Lead Manager and Underwriter.
The Board has concluded that undertaking a Placement and Entitlement Offer to
raise new equity is the best option for the company and its shareholders. The
Equity Raising balances the desire of the board to direct a significant
proportion of the Equity Raising towards existing shareholders whilst
providing the opportunity to introduce new, supportive institutional and
retail shareholders to the register through the Placement.
The balance of Infratil's consideration will be funded through a combination
of NZ$400 million of debt from a committed acquisition debt facility and the
use of existing debt facility headroom.
"The funding package, including the new equity, is expected to leave
Infratil's balance sheet in a position to support growth and future
development platforms," said Marko Bogoievski, CEO of Infratil.
Entitlement Offer overview
Under the Entitlement Offer, eligible shareholders are entitled to acquire 1
New Share for every 7.46 Existing Shares held as at 7:00pm (NZ time) and
5:00pm (Sydney time) on Tuesday, 21 May 2019 at an Application Price of
NZ$4.00 per New Share.
The Application Price reflects a 10.4% discount to NZ$4.46, being the volume
weighted average price of Infratil's shares as traded on the NZX for the last
five trading days prior to Friday, 17 May 2019, and a 9.0% discount to the
theoretical ex-rights price of NZ$4.40.
"Reflecting their commitment to Infratil, the acquisition of Vodafone NZ and
the associated equity raising, I am pleased to confirm that all Infratil
Directors intend to take up their full entitlements under the Entitlement
Offer," said Infratil Chairman Mark Tume.
Placement overview
The Placement will comprise the issue of approximately 25 million New Shares
to raise approximately NZ$100 million. The Placement Issue Price of NZ$4.00
per New Share is the same as the Entitlement Offer Application Price.
The Placement will open at 10:00am (NZ time) on Friday, 17 May 2019 and close
at 8:00am (NZ time) on Saturday, 18 May 2019.
Further information
Further details of the Acquisition and the Equity Raising are set out in the
Investor Presentation provided to the NZX and ASX today, in addition to the
information already disclosed by Infratil on the Acquisition in its
announcement on Tuesday 14 May.
Further information about the Acquisition and the Equity Raising will be
discussed during the full year results presentation conference call:
Conference code: Infratil
NZ Toll Free: 0800 122 360
Australia Toll Free: 1800 760 146
International Toll Free +64 99 507 043
Any enquiries should be directed to:
Mark Flesher, Investor Relations, Infratil Limited mark.flesher@infratil.com
Media enquiries can also be directed to:
Hugo Shanahan, SenateSHJ, hugo@senateshj.co.nz / +64 275 111 561
End CA:00334659 For:IFT Type:OFFER Time:2019-05-17 08:30:15
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