Fee changes for Infratil manager

Infratil says it has amended the terms of its agreement with Morrison and will now pay the management fees monthly rather than quarterly.

The part of the fee which was tied to the company's share price has also been changed. Previously it was calculated using the price over the last business day at the end of each calendar quarter but from now on it will be based on the weighted average market prices over the five business days at the end of each calendar month.

"Infratil believes that these amendments will make the fee calculation more representative of its enduring value, and less prone to variation due to the timing of capital raisings or daily share market volatility," the company says.

"Infratil believes that the amendments are in its best interests and fair to all shareholders."

The company reports that it obtained independent advice on the amendments from Arthur Andersen Corporate Finance, which considered them to be fair to the non-Morrison & Co associated shareholders in Infratil.

The amendments took effect at the start of this month and the company was granted a waiver from the NZSE to seek shareholder approval for the changes.

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