Infratil rises after Shell acquisition, market gains
Shares in Infratil rise after it finalised the purchase of Shell New Zealand's downstream assets in a 50/50 consortium with the New Zealand Superannuation fund.
Shares in infrastructure investor Infratil rose 3c to $1.68 today on news the company, in a 50/50 consortium with the New Zealand Superannuation fund, has finalised the purchase of Shell New Zealand's downstream assets.
For a purchase price of $696.5 million plus a working capital adjustment, the consortium is buying Shell New Zealand's distribution and retail businesses and a 17.1% interest in the New Zealand Refining Co, whose shares eased 2c to $3.98.
"The details were a long time coming and the reaction has been mildly positive," said Grant Williamson, director at Hamilton Hindin Greene. "It seems to be quite well structured and quite well funded."
The benchmark NZX-50 index closed up 10.623 points, or 0.3%, at 3251.1. Turnover was worth $87 million, of which $24 milion was in Telecom shares. There were 52 rises and 30 falls among the 110 stocks traded.
Pike River Coal rose 3c to 92c. Investors were still waiting for details of a capital raising but the company had probably lagged resource stocks in Australia and was catching up.
Nuplex rose 10c to $3.58. "Nuplex just continues to perform well and it is a big change from 18 months ago," Mr Williamson said.
Fisher&Paykel Appliances rose 1c to 61c on a day in which it disclosed the easing of a bank covenant.
NZ Farming System Uruguay rose 2c to 40c after announcing the sale of land to help it meet a commitment to PGG Wrightson.
Among leading shares, Telecom was up 1c to $2.13, Fletcher Building eased 3c to $8.38, and Contact Energy rose 3c to $6.26.
Geneva Finance debenture and noteholders voted in favour of proposals which delays repayments but allows the finance company to continue operating a moratorium.
Hallenstein Glasson rose 5c to $3.39. Mainfreight rose 7c to $6.13 and TrustPower rose 10c to $7.30.
NZ Windfarms rose 6c to 39c and Renaissance Corp rose 3c to 23c. Charlie's Group rose 1.1c to 8.6c.
Xero, which has launched its services into personal finance management, rose 2c to $1.60.
NZPA
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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Infratil rises after Shell acquisition, market gains
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