Infratil posts first-half earnings growth, sells Fortysouth stake for $173m
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The news: Infrastructure investor Infratil has reported a lift to first-half earnings and announced the divestment of its 20% stake in New Zealand telco Fortysouth for NZD200 million ($173 million).
The numbers: Infratil reported a 7% rise in first-half proportionate operational EBITDAF to NZD514 million. The uplift was driven by its investment in US renewables company Longroad Energy and Australian data centres group CDC.
Proportionate capital expenditure was down NZD52 million to NZD1.139 billion for the half.
The total asset value of Infratil's investments grew by NZD735 million to more than NZD19 billion in the six-month period.
The group also declared an interim dividend of 7.25 cents per share, flat with a year earlier.
It reiterated its full-year proportionate operational EBITDAF guidance of between NZD1 billion and NZD1.05 billion.
The context: Infratil said the conditional sale of its Fortysouth interest to InfraRed Capital Partners and Pantheon takes the group more than halfway to its medium-term target of NZD1 billion of divestments.
Infratil acquired its interest in Fortysouth in 2022 when Vodafone NZ sold its passive mobile tower infrastructure to Infratil, InfraRed Capital Partners and Northleaf Capital.
What they said: "Fortysouth, while a high-quality business with strong leadership and customer relationships, represents a relatively small position in our portfolio," said Infratil CEO Jason Boyes.
"We're pleased to have reached an efficient agreement with existing holders, allowing for a seamless transition without the need for a broader sale process."
The source: ASX
