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Prime Infrastructure raise A$90m in placement

Media release

Friday 4th March 2005

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Prime Infrastructure has successfully completed an institutional placement of Stapled Securities.

The placement raised A$90m (subject to receipt of relevant ASIC waiver) at a price of A$1.40 per stapled security, which represented a discount of 2.8% to the volume weighted average price for the 10 trading days up to and including the day prior to the placement.

Approximately $35m of the $90m raised through the Placement is conditional upon security holder approval at an extraordinary general meeting ("EGM"), which will be held as soon as is practicable.

Allotment of Stapled Securities under the unconditional portion of the placement is expected to take place on 9 March 2005, with allotment of the balance to occur following the EGM,
subject to that portion of the placement being approved by security holders.

The placement, which was announced on 3 March 2005, sought to raise between $50m and $90m of new capital for identified opportunities, including further investment in Global Wind
Partners, via a nonunderwritten book build.

There was strong demand for Prime Infrastructure's Stapled Securities under the placement from both existing institutional security holders and new institutional investors. It was significantly oversubscribed at the $1.40 clearing price and the entitlements of participants in the placement were subject to scaling due to the overwhelming demand.

Managing director of Prime Infrastructure Management Limited, Chris Chapman said "This is an outstanding result for Prime Infrastructure and the confidence shown in it by the participating institutions is most gratifying. To be so heavily oversubscribed demonstrates the growing enthusiasm in the market for Prime Infrastructure's strategy of investing in a
diversified portfolio of quality infrastructure assets."

"As a result of the placement we were also able to introduce onto our register a significant number of new domestic and international institutional investors keen to become part of the Prime Infrastructure story", Chapman said.

Prime Infrastructure also announced yesterday its intention to

a) undertake a Share Purchase Plan ("SPP"). This is intended to allow all current investors the opportunity to acquire more Stapled Securities on similar terms to the placement. Prime Infrastructure is in the process of determining the details of the SPP and these will be announced as soon as practicable? and

b) present a proposal to Prime Infrastructure security holders to restructure and rename the Group's operations to Babcock & Brown Infrastructure and implement associated changes to existing management and corporate governance arrangements.

The placement was arranged by UBS and Wilson HTM, in conjunction with Tricom Securities.

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