Duncan Saville's Utilico ends 12-year run as substantial Infratil investor

Friday 22nd January 2016

Long-standing Infratil shareholder Utilico Investments has ended its 12-year run as a substantial shareholder in the infrastructure investor.

The UK investment house sold 5 million shares on Jan. 20, trimming its stake in the company to 4.5 percent, below the 5 percent threshold that deems an investor to be a substantial shareholder. Utilico used to be known as Infratil International, whose directors included Duncan Saville, one of the original directors and a founder of Infratil.

The UK firm is managed by Saville's ICM Investment Management, and counts Dugald Morrison, the younger brother of deceased Infratil founder Lloyd Morrison, as its New Zealand general manager. ICM also manages ASX-listed Zeta Resources, which owns almost a fifth of New Zealand Oil & Gas.

Utilico has been selling Infratil shares since 2010, when it owned almost a fifth of the company. The trustee of HRL Morrison Family Trust is the company's biggest shareholder with about 11 percent, followed by the Accident Compensation Corp's investment unit holding 10 percent.

Infratil shares gained 0.3 percent to $3.14 today, and have climbed 90 percent since Utilico began selling. The stock is rated an average 'buy' based on six analyst recommendations compiled by Reuters, with a mean price target of $3.51.

Utilico took a near-14 percent stake in Christchurch-based Smiths City in 2014, and the retailer this week said it was buying Furniture City to gain a foothold in Auckland.

BusinessDesk.co.nz

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