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3i Infrastructure GBP350m fundraise

12 May 2016 08:20

3i Infrastructure has launched a capital raise of up to GBP350m after reporting a total return of 14% for the year to the end of March.

3i Group has undertaken to subscribe for its full entitlement under the capital raise. 3i Infrastructure chairman Richard Laing said: "Since listing on the London Stock Exchange in 2007, 3i Infrastructure plc has delivered a strong performance for shareholders with an annualised total shareholder return of 11.3 per cent. This has been achieved by the Investment Adviser's execution against our strategic priorities of maintaining a balanced portfolio, a disciplined approach to new investment and engaged asset management whilst also maintaining an efficient balance sheet.

"The capital raise will be used by the business to fund the recently announced investments and to invest selectively in further high quality investments from the Investment Adviser's healthy pipeline."

3i Infrastructure is raising up to £350 million at a price of 165 pence per new ordinary share with the ability to issue up to an additional £130 million on a non pre-emptive basis and subject to demand and investment pipeline.

The offer price represents a premium of 4.8 per cent. to the net asset value per existing ordinary share as at 31 March of 161 pence adjusted for the final dividend for the financial year ended 31 March of 3.625 pence per ordinary share which will be marked 'ex' on 19 May.

The offer price represents a discount of 5.9 per cent. to the middle market closing price of 179 pence per existing ordinary share on 11 May 2016, being the last trading day prior to this Announcement, adjusted for the Final Dividend.

The company intends to use the net proceeds of the Offer and the Additional Issue, if any (as referred to below) to:

o fund the completion of the Company's previously announced investments in Wireless Infrastructure Group and TCR, totalling approximately £230 million, in place of funding those investments by borrowing under the Company's existing revolving credit facility; and

o invest selectively in further new investments from the Investment Adviser's pipeline of opportunities during the rest of the financial year.

· The Offer comprises the Open Offer, Placing and Intermediaries Offer. The Open Offer is fully pre-emptive on the basis of 7 New Ordinary Shares for every 26 existing ordinary shares held at 5 p.m. on 10 May.

The Open Offer is not being underwritten.

The group also reported a good total return for the year to the end of March driven by the continued robust performance of the portfolio, including the positive impact of regulatory developments on the value of the Company's holding in Elenia.

Laing said: "We delivered a total return of 14%. This compares with the Company's target of delivering a total return of 8% to 10% over the medium term. We redeployed a majority of the proceeds from the sale of the Company's interest in Eversholt Rail across our target markets and met our dividend target for the year of 7.25 pence per share. Consistent with our progressive dividend policy, we are announcing a total dividend target for FY17 of 7.55 pence per share, implying a growth of over 4% compared to the total dividend we delivered in FY16."

At 8:20am: (LON:3IN) 3i Infrastructure Ltd share price was -8.35p at 170.65p

Story provided by StockMarketWire.com

Related Company: 3IN

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