Infrastructure investor Infratil has granted Australian private equity fund Archer Capital a call option over part of Infratil's shareholding in Brisbane's Energy Developments.
The call option totals 19.99 per cent of the shares of Energy Developments, in which Infratil has a 32.1 per cent shareholding.
The call option would only
become effective if and when a cash exercise price was agreed between Archer and Infratil and, subsequently, either a takeover bid made by Archer or takeover scheme agreed between Archer and Energy Developments became unconditional, Infratil said.
"This will allow Infratil, if it wishes at the time, to sell the balance of its shareholding into the bid or scheme. Infratil has also agreed, in certain circumstances, to reimburse Archer's costs and share defined upside benefits."
The call option would expire if various milestones were not met.
Infratil said that apart from granting the call option over a portion of its holding, it had no connection with the Archer proposal and its interests were the same as all other shareholders.
A trading halt placed on Infratil shares on Friday afternoon was lifted before the sharemarket opened yesterday.
- NZPA
