Sharechat Logo

AMP Capital gets sign-off to build Chorus stake above 10%

Tuesday 1st May 2012

Text too small?

AMP Capital Investors New Zealand, which manages about $12 billion locally, has been granted government approval to build its stake in telecommunications network operator Chorus above the 10 percent cap.

The fund manager got Crown sign-off to lift its existing stake in Chorus from just under 10 percent to as much as 15 percent, the telecommunications lines company said in a statement.

Investors have to get government approval to buy hold more than 10 percent of Chorus' stock under its constitution.

AMP Capital has bucked the trend among fund managers by backing the network company when it was demerged from Telecom, with most institutional investors choosing to build unfettered stakes in the retailer.

Chorus was carved out of Telecom as a standalone entity last year in a deal that would let the network company tap $929 million of taxpayer funds to build high-speed broadband lines across three-quarters of the nation. That lifted regulatory burdens on Telecom, which is now operates as a retail company.

As part of the deal, Telecom shed its cap on ownership, freeing it up for a takeover, though Chorus retained the so-called kiwi share obligations, limiting international investment in the company.

Chorus' shares gained 1.8 percent to $3.43 in trading yesterday, and have climbed 17 percent since listing last year.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Booster tests waters with NZX listing of private property trust
Liquidation can be sought on small debts, appeal court finds
House price inflation rekindles but low sales volumes suggest caution
Liquidators estimate $16m shortfall from Stanley-Tallwood collapse
Manufacturing contraction extends into August
House price inflation rekindles but low sales volumes suggest caution
13th September 2019 Morning Report
Tamarind halts Tui drilling; OMV assesses options
NZ weaker as ECB package, inflation data lifts greenback
MARKET CLOSE: Z Energy, Synlait crash on earnings downgrades

IRG See IRG research reports