Utilico International is planning a further capital repayment after a deal involving one of its major assets, CSX World Terminals Brisbane.
The New Zealand infrastructure investor said its planned two-for-three capital reduction of 50c a share would go before shareholders at its annual meeting on November 5. It would distribute
$19.6 million.
"The board also intends to seek shareholder approval to return an additional amount of approximately $6.9 million via a further seven-for-10 capital reduction at 50cps, to be completed when sufficient proceeds from the CSX sale are received," the company said.
When both reductions were completed, Utilico said, shareholders would own 10 shares for each 100 shares they now owned, with an estimated net tangible asset backing of 116cps.
Shareholders would also have received $45 for the 90 shares (50cps) that would have been redeemed.
Utilico owns half of CSX World Terminals, which is selling assets and trade receivables to Patrick Stevedores Operation No 2.
It said its share of the proceeds was expected to be around $A7.9 million ($9.73 million), compared with a consolidated book value of $2.8 million and an original investment of $5.4 million.
- NZPA
