Only yesterday, Infratil Limited (ASX: IFT) released an announcement saying that their acquisition of Vodafone NZ would occur in the next two months. That time frame just shortened to less than three weeks.
About Infratil And Vodafone NZ
Infratil is a New Zealand-based infrastructure investment company. It owns a range of diversified assets including airports, electricity generators, retailers, and a public transport business. Its operations cover New Zealand, Australia and the US.
Infratil announced in May that it and Brookfield Asset Management Inc would acquire Vodafone NZ for NZ$3.4 billion.
Approvals Granted
Yesterday, Infratil announced that they had received clearance from the Commerce Commission to go ahead with the acquisition. Infratil was only waiting for consent from the Overseas Investment Office (OIO) which they expected to receive within the next two months.
Infratil unexpectedly announced this morning that they have been granted OIO consent and the acquisition of Vodafone NZ has now gone unconditional.
The transaction is now expected to occur on 31st July 2019.
FY20 Guidance
Infratil initially released FY20 guidance in their FY19 results announcement and the guidance was based on a seven-month contribution from Vodafone NZ.
As the acquisition will take place earlier than expected, Infratil has increased guidance for FY20 underlying EBITDAF to between $655 million and $695 million, up from $635 million to $675 million.
It’s likely that Infratil shares will be pushed higher today with this increased guidance and confirmation that the acquisition will go ahead.
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
