By DITA DE BONI
The United States parent of Waste Management NZ sold out of the subsidiary yesterday, raising $100 million in exchange for relinquishing its 60.5 per cent holding.
Float lead manager Warburg Dillon Read had set a final price for the secondary offering of $3.30, the bottom value of an
indicative price range given in the float prospectus.
The main Waste Management shares closed last night down 10c at $3.60, while the new shares - trading on a special board because of a technical problem at the exchange - debuted at $3.55.
All 58.9 million shares were allotted in the issue, including an over-allotment option to complete the exit. Warburg Dillon Read said public pool applications would be accepted in full.
Waste Management (US) expects to gross about $100 million from exiting New Zealand.
Infratil New Zealand is thought to have considered buying a 30 per cent stake in the company, although chairman Kevin O'Connor would not comment last night.
About 30 million shares traded yesterday in addition to the placement, which boosted the day's volume to 90 million.
