Sharechat Logo

Infratil Limited (NZX: IFT) Non-binding Indicative Approach for IFT Shares

Wednesday 9th December 2020

Text too small?

The Board of Infratil Limited has become aware that AustralianSuper Pty Ltd, as trustee of AustralianSuper, (AustralianSuper) has publicly announced its interest in acquiring 100% of IFT.

The Board confirms that it received an initial non-binding, incomplete, indicative and confidential offer from AustralianSuper to acquire IFT via a scheme of arrangement on 18 October 2020 for cash consideration of NZ$4.69 and an in-specie distribution of 0.2210 Trustpower Limited shares. This implied a total offer value of NZ$6.40 per IFT share. That offer was subsequently revised on 27 November 2020 to increase the cash consideration to NZ$5.79. The revised proposal confirmed by AustralianSuper yesterday implies a total offer value of NZ$7.43 per IFT share, based on a NZ$7.43 closing price per Trustpower share as at 8 December 2020 (Proposal). This Proposal represents a 22.2% premium to the 8 December 2020 IFT closing price.

The Board engaged expert legal (MinterEllisonRuddWatts) and financial advisors (Goldman Sachs) and formed a Committee of Independent Directors in October to assist in its assessment of the proposals. The Board reviewed valuation and the proposed structure and unanimously rejected both proposals as materially undervaluing IFT’s high quality and unique portfolio of assets on a control basis. The Board also notes material conditions related to Foreign Investment Review Board and Overseas Investment Office approvals in Australia and New Zealand and considers that there are other aspects of the proposal that are unattractive to IFT shareholders, including distributing Trustpower Limited shares without recognising a control premium and avoiding the need to make a takeover offer for that business.

The IFT Board will consider any proposal to maximise shareholder value, but given the significant deficiencies in the Proposal, no further engagement is planned at this time.

See the link below for more details:

Non-binding Indicative Approach for IFT Shares

Source: Infratil Limited

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

Greenfern Industries Limited (Greenfern) Normanby Power Station Gets Green Light
Just Life Group Limited (NZX: JLG) to Acquire Business of About Health and Raise Capital
Tourism Holdings Limited (NZX: THL) Market Update
Delegat Group Limited (NZX: DGL) 2021 Harvest Announcement
Kiwi Property Group Limited (NZX: KPG) Gives Green Light to New Sylvia Park Office Building
Just Life Group Limited (NZX: JLG) Invests in Domestic Rainwater Tank Business
NZME Limited (NZX: NZM) NZ Markets Disciplinary Tribunal Censures
Rua Bioscience Limited (NZX: RUA) Announces CCO with Global Pharma Experience
Cannasouth Limited (NZX: CBD) Supply Activity Added to Cannasouth Commercial Licence
Skellerup Holdings Limited (NZX: SKL) Upgrades FY21 Earnings Guidance