Infratil buys 24% stake in TrustPower -

Utilities investor Infratil has announced bought Alliant Energy's 24 per cent stake in TrustPower to give it 50 per cent control of the country's fifth-largest power company.
Infratil paid the US company $NZ445 million in cash plus took over $65 million of debt for Alliant's New Zealand's assets.
These are the TrustPower stake plus a 5.1 per cent stake in Infratil.
Before the purchase, Infratil had 35.2 per cent of the Bay of Plenty-headquartered power company, while the Tauranga Energy Consumer Trust held 28.6 per cent.
Infratil said it proposed to retain a minimum of 15 percent of TrustPower through the Alliant holding company it bought.
Infratil said it will sell down around 4 percent of TrustPower to increase liquidity.
Infratil chairman David Newman said it and Alliant had worked together since 1999.
Infratil bought into TrustPower in 1994 and believed it will continue to be an exceptional performer.
"As a renewables generator it will also benefit from the global drivers associated with climate change, as these forces work their way into Government policies," he said.
The purchase will be debt financed.
Having over 50 percent of TrustPower would allow Infratil to consolidate it into its balance sheet and get control of cashflows.
Infratil director Lloyd Morrison said Infratil's debt levels had to be viewed in the context of the very strong balance sheet of TrustPower and Infratil's other subsidiaries.
Infratil and the Tauranga trust had co-operated in the past and Mr Morrison said Infratil believed the trust had also benefited from this joint effort.
Infratil has agreed to give the trust an option for the Trust to buy up to 14 million TrustPower shares (4.4 percent of the company) at $5.90 per share plus an option to purchase up to 10.95 million Infratil shares at market price.