Infratil sells 5% Contact Energy stake in $495m block trade to fund future growth

Infratil says it has agreed to sell 53.53 million shares – representing a 5% stake – in Contact Energy through a fully underwritten block trade.

The sale is at $9.25 per ordinary share, generating expected gross proceeds of about $495.17 million, and taking Infratil’s shareholding down to 9.08%.

The sell-down is expected to complete on May 25.

Contact has gone into a trading halt on the NZX while the transaction takes place.

Infratil acquired the stake when Contact bought Manawa Energy – in which Infratil had a 51% stake – in July last year.

Infratil said it remained supportive of Contact and had committed to retaining its remaining shares through until at least Contact’s 2026 full-year results announcement, expected on or around August 18.

The infrastructure investor’s chief executive Jason Boyes said the transaction provided Infratil with additional flexibility to fund future growth opportunities.

“While we have no immediate funding requirements and our divestment programme is on track, we consider it prudent to reposition this capital now,” Boyes said.

“This means we’re well-prepared to support future growth opportunities across our portfolio,” he said.

Further details on the outlook for Infratil’s portfolio will be provided at its results announcement on May 26, the company said.

Early this month, CDC Data Centres – half-owned by Infratil – said it had secured the largest data centre contract in Australia’s history, a 555-megawatt deal that takes its total contracted capacity to over one gigawatt.

Shares in Infratil last traded at $15.26 – having gained 30% over the last 12 months.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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