WELLINGTON: New Zealand’s Infratil Limited (IFT.NZ) said on Monday it has agreed to acquire a further 4.92% stake in power generator Contact Energy Limited (CEN.NZ) for NZ$437.7 million ($261.5 million), increasing its total holding to 14.3%.
The infrastructure investor will buy the stake from TECT Holdings, the former Tauranga Energy Consumer Trust, at NZ$8.95 per Contact share, according to a statement.
The acquisition will be funded through a combination of NZ$218.8 million of existing debt and the issuance of NZ$218.8 million in new Infratil shares to TECT. The new shares are priced at NZ$12.43 each, matching Infratil’s closing price on Oct. 17.
The deal follows Infratil’s recent sale of its 51% stake in Manawa Energy to Contact in July, which initially gave it a 9.4% holding in the merged entity.
“The transaction is a win-win for both parties,” Infratil Chief Executive Jason Boyes said. “Part-funding with new shares efficiently preserves our flexibility for future growth, while increasing ownership of a strong cashflow-generating business.”
Upon completion, TECT will become a shareholder in Infratil, diversifying its investment away from a single energy asset.
“We know the Infratil team and their track record well, and we’re delighted to continue this relationship by becoming an Infratil shareholder,” said TECT Chief Executive Wayne Werder.
The 17,605,277 new Infratil shares issued to TECT will be subject to a voluntary escrow period until Oct. 22, 2026, restricting their sale on the market.
($1 = 1.6740 New Zealand dollars)