NZ shares fall as Infratil flags equity raising for Vodafone deal
The S&P/NZX 50 Index fell 56.48 points, or 0.6 percent, to 10,070.35. Within the index, 29 stocks fell, 18 rose, and three were unchanged. Turnover was $155.6 million.
Infratil fell as much as 6.1 percent, and ended the day at $4.48, down 2.6 percent on a bigger volume than usual of 2.1 million shares. The investment firm will pay $1.03 billion, matched by partner Brookfield Asset Management, for Vodafone New Zealand, which will also take on $1.3 billion of debt. Infratil will pay its share of the purchase price by raising up to $400 million in an underwritten equity offer, draw on a $400 million debt facility for acquisitions, and use up the headroom left in its existing bank facility.
Chief executive Marko Bogoievski said Infratil and Brookfield paid the market price, something Fat Prophets head of research Greg Smith viewed as a full price, and potentially weighing on the stock.
James Lindsay, a senior portfolio manager at Nikko Asset Management, said Vodafone chief Jason Paris was confident about rebasing costs in the business.
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