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Infratil announces NZ$300 million equity raising to further capacity for growth

Tuesday 9th June 2020

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Infratil announces NZ$300 million equity raising to further capacity for growth

Infratil is pleased to announce a NZ$300 million equity raising ("Equity Raising"), comprising a fully underwritten NZ$250 million Institutional Placement ("Placement") and an approximately NZ$50 million non-underwritten Share Purchase Plan ("SPP").

Proceeds from the Equity Raising will provide additional balance sheet flexibility to fund growth investments across Infratil’s existing portfolio companies and take advantage of new opportunities that may arise as a result of current market conditions.

Infratil’s diversified portfolio of businesses with strong long-term fundamentals has proved resilient to the impact of COVID-19. Infratil has a long track record of delivering strong returns to shareholders and maintains a ten-year total shareholder return target of 11-15% per annum.

Infratil maintains an attractive pipeline of growth opportunities across its portfolio and is continuing to evaluate additional opportunities in key growth sectors and new geographies. Infratil will continue to apply a disciplined approach to allocating capital when assessing potential investments.

The proceeds of the Placement and SPP (combined with cash on hand and currently available and undrawn debt facilities) will provide Infratil with NZ$514 million of total available liquidity. Following the Equity Raising, wholly owned group gearing will be reduced from ~34.9% to ~29.3% (assuming a successful raise of the full NZ$300 million).

UBS New Zealand is acting as Sole Lead Manager and Underwriter. Further details of the Equity Raising are as follows:

Placement

The fully underwritten Placement will be conducted through a bookbuild in which eligible institutional investors in New Zealand, Australia, and certain other jurisdictions will be invited to participate. A trading halt has been granted by NZX and ASX to facilitate the Placement.

The Placement will comprise the issue of 52.5 million new shares, representing approximately 8.0% of existing issued capital, to raise NZ$250 million. The Placement Issue Price of NZ$4.76 per new share represents a discount of 8% to the last NZX close price on Monday, 8 June 2020.

It is intended that eligible shareholders who bid for an amount up to their 'pro rata' share of new shares under the Placement will be allocated their full bid on a best efforts basis.

Share Purchase Plan

Infratil intends to offer the SPP to eligible shareholders in New Zealand and Australia, inviting them to apply for up to NZ$50,000 / ~A$47,000 of new Infratil shares free of any brokerage, commission and transaction costs. The SPP offer size is approximately NZ$50 million, which Infratil believes will enable the vast majority of Infratil's non-institutional shareholders to maintain their relative shareholdings if they desire. Infratil may accept oversubscriptions at its discretion, and if scaling of the SPP is required, it will be done with regard to existing shareholder holdings at the relevant record date, and otherwise at its discretion.

The price of new shares offered under the SPP will be the lower of the Placement Issue Price or a 2.5% discount to the 5-day VWAP of Infratil shares traded on the NZX during the last 5 days of the SPP offer period.

The record date for the SPP is 5 June 2020 (for shareholders on the Australian sub-register) or 8 June 2020 (for all shareholders except shareholders on the Australian sub-register), and the final terms of the SPP are expected to be announced in more detail on Friday, 12 June 2020. A SPP booklet, together with an application form, will be sent to eligible shareholders on Friday, 12 June 2020 and will be available to eligible shareholders on the website https://www.infratilshareoffer.com established for the SPP on the same day. The closing date for applications to be received from eligible shareholders is Thursday, 25 June 2020.

Eligible shareholders wishing to acquire new shares under the SPP will need to complete the application form.

The new shares issued under the Placement and SPP will rank equally in all respects with existing Infratil fully paid ordinary shares on issue.

Further information

Further details of the Equity Raising are set out in the Investor Presentation provided to the NZX and ASX today.



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