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Z listing ups value of Infratil’s remaining stake but reduces earnings

Wednesday 21st August 2013

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Infratil's remaining 20 percent stake in Z Energy is worth nearly as much as the book value of its half-share prior the sharemarket listing of the petrol station chain.

The Wellington-based infrastructure investor said it received net proceeds of $396 million for the 30 percent of Z Energy it sold via an initial public offering. Gross proceeds were $420 million.

The shares debuted on Monday at a premium to the offer price of $3.50 and were trading at $3.75 today, the top of the indicative price range.

The value of Infratil's remaining 20 percent interest in Z Energy was $280 million at the issue price of $3.50 per share, which is not far short of the $324 million value the company had for the whole 50 percent stake in March 2013 financial statements of $324 million.

But the company will book reduced earnings from Z Energy, reflecting the lower holding.

Infratil is now forecasting earnings before interest, tax, depreciation, amortisation and adjustment for fair value instruments of between $500 million and $540 million in the year ending March 31, 2014, down from between $520 million to $560 million previously.

The company also booked a share of the $50 million special dividend paid by Z Energy prior to the IPO and that adds to Infratil's cashflow, which is now forecast to be between $300 million and $340 million, up from $250 million to $280 million previously.

Infratil's shares gained 0.2 percent to $2.46 today.

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