Infratil sells 19% Metlifecare stake for $237.9 m

Wellington-based Infratil entered into a block trade deal with brokerage Forsyth Barr to sell 42.4 million shares off-market.

Infratil has sold its cornerstone stake in Metlifecare for $237.9 million, generating an annual return of 15.5 percent over the three-and-a-half years it held shares of the retirement village operator and developer.

Wellington-based Infratil entered into a block trade deal with brokerage Forsyth Barr to sell 42.4 million shares off-market at $5.61 apiece, it said in a notice to the ASX yesterday. Infratil bought into Metlifecare in October 2013 at $3.53, investing alongside the New Zealand Superannuation Fund. The sale price is a 7.6 percent discount to Metlifecare's last trading price of $6.07.

"Infratil retains a strong set of organic growth opportunities in our newly established platforms of data infrastructure, renewables and eldercare," it said.

The company told investors last week it had $380 million of cash before any divestments and was looking at "significant near-term opportunities" in those three sectors.

Last year, Infratil chief executive Marko Bogoievski said he didn't view the Metlifecare stake as a long-term investment but had been happy with its performance.

Infratil shares last traded at $2.965 and have gained 7.8 percent so far this year.

(BusinessDesk)

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