Infratil looks to equity raising for Vodafone NZ

Company News

by Rachael Jones

Infratil (ASX:IFT) has announced a NZ$400 million equity raising to partially fund the acquisition of Vodafone New Zealand.

Earlier this week a consortium owned by Infratil and Brookfield Asset Management announced it had executed a conditional agreement to acquire Vodafone New Zealand from the Vodafone Group for an enterprise value of NZ$3.4 billion.

The  purchase price is to be funded via a NZ$1,029 million equity contribution from each of Infratil and Brookfield, with the balance funded from Vodafone NZ level debt and a portion of equity reserved for the Vodafone NZ executive team.

Infratil's equity contribution will be partially funded via a fully underwritten NZ$100 million institutional placement and a fully underwritten NZ$300 million.

The balance of Infratil's consideration will be funded through a combination of NZ$400 million of debt from a committed acquisition debt facility and the use of existing debt facility headroom.

Shares in Infratil (ASX:IFT) closed 0.24 per cent higher at $4.25 yesterday.

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