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Infratil raises guidance on earlier than expected Vodafone deal

Friday 12th July 2019

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Infratil has lifted its 2020 full-year earnings guidance by $20 million as it expects to complete the acquisition of Vodafone NZ a month earlier than expected. 

The revised guidance for $655-$695 million of underlying earnings before interest, tax, depreciation, amortisation and changes in financial instruments follows clearance from the Overseas Investment Office for the deal.

Infratil says the new figures take into account an eight-month contribution from Vodafone, given the $3.4 billion deal - being done in partnership with Brookfield Asset Management - is now expected to complete on July 31. 

The deal had been conditional on approval from the overseas investment regulator and the Commerce Commission, which yesterday also approved the purchase. 

Infratil's shares rose 1.3 percent to $4.74 yesterday and have gained about 30 percent so far this year.

While Infratil’s current interests include a 51 percent stake in Trustpower, it told the competition regulator that Trustpower - which competes in the residential broadband market -  and Vodafone would continue as independent companies. 

Yesterday, Commerce Commission chair Anna Rawlings said the regulator was satisfied Infratil’s proposed shareholding in both Vodafone and Trustpower would not substantially lessen competition in any of the markets it assessed.

Trustpower is currently Infratil’s biggest asset, worth about $1.1 billion, followed closely by Canberra Data Centres at $841-$942 million and Wellington International Airport at $770-850 million.

Infratil’s planned purchase of Vodafone will transform its portfolio, with 76 percent of the post-acquisition assets being split equally between renewable energy and data and connectivity. Those two segments account for 48 percent and 22 percent of the portfolio currently.

(BusinessDesk)

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