Wellington airport shareholder Infratil raising $300m

Tuesday, 9 June 2020

Infratil owns 66 per cent of Wellington International Airport, which is recovering from the Covid-19 restrictions on travel.

Infrastructure investor Infratil has launched a plan to issue up to $300 million in new shares for new opportunities and its existing portfolio.

The company, which owns a majority stake in Wellington International Airport among other investments, says it will undertake a $250m share placement among institutional investors and offer $50m in shares to other investors.

Proceeds from the equity raising will strengthen the company's balance sheet, allow to it invest in its existing portfolio, and take up ''new opportunities that may arise as a result of current market conditions,'' the company said.

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Infratil said it continued to weigh up opportunities in key growth sectors and new countries. But more recently, it reached an agreement with the Wellington City Council and banks on terms for a possible bailout of Wellington Airport in the wake of New Zealand's border closures.

The share placement plus cash on hand would give Infratil $514m that it could invest and would also lower its debt ratio.

At $4.76 a share, the $250m placement would see Infratil issue 52.5 million new shares, representing about 8 per cent of its existing issued capital.

The company's current share price is $5.175.

Infratil's portfolio includes 66 per cent of Wellington Airport and stakes in energy companies including Tilt, which holds Trustpower's Australian and New Zealand wind assets.

It also holds a 48 per cent stake in data company CDC and last year was also given Commerce Commission clearance to buy half of Vodafone NZ.