Infratil told the NZX last night that it had acquired the additional 6.3% equity in Energy Developments Ltd (EDL) from Christchurch-based electricity networks company Orion New Zealand, taking its total stake in EDL ordinary shares to 19.9%.
The decision to move to 19.9% confirmed Infratil's confidence in the EDL board and management, as well as the sectors in which it operated, said HRL Morrison and Company managing director Lloyd Morrison from Wellington.
HRL Morrison and Co. manages Infratil and its investments, which include equity in New Zealand and Scottish airports, as well as electricity, waste-to-energy and port investments in New Zealand and Australia.
EDL is a leader in the collection of landfill waste gases and coal mine waste gases and use of these gases for power generation. It is also a leading provider of regional power supplies to remote communities and mining projects across Australia, utilising both gas turbine and reciprocating engine solutions.
Infratil has also provided to financially underwrite, at A$3.60 per share, Orion’s intended placement of a further 5.13 million EDL shares through Goldman Sachs JB Were. Also, if at any time between April 1 and October 14, Orion decides to sell its remaining 4.25 million EDL shares Infratil has agreed to further underwrite that placement at an escalating straight line basis, from A$3.60 to A$4.18 per share.
Infratil first acquired 10% of EDL’s shares in July 2002 and subsequently acquired a further 3.7% of the shares through market purchases and participation in placements.
