Infratil has purchased TECT Holdings’ 4.9 per cent stake in Contact Energy for $NZ437.7 million ($386 million), priced at $NZ8.95 per share. Infratil is an infrastructure investment company with holdings in energy, airport, data and social infrastructure businesses. Contact Energy is a New Zealand-based electricity generator and retailer.
The purchase price will be funded through existing debt capacity and the issuance of $NZ218.8 million of new Infratil shares to TECT at $NZ12.43 per share. This strategic acquisition will significantly increase Infratil’s ownership position in one of New Zealand’s leading energy companies.
Upon completion of the transaction, Infratil’s total shareholding in Contact Energy will increase to 14.3 per cent. This represents a notable rise from its previous holding of 9.4 per cent, which followed the recent merger of Contact Energy and Manawa Energy.
The increased stake in Contact Energy underscores Infratil’s confidence in the company’s performance and future prospects within the evolving energy market. The transaction is a significant move for both companies, marking a notable shift in shareholding and solidifying Infratil’s position in the energy sector.
