Australian Super makes $NZ5.37bn takeover bid for Infratil

Australian Super has put forward a $NZ5.37bn ($5.09bn) takeover bid to buy New Zealand-based infrastructure investment company Infratil.

The company has hired Goldman Sachs as its defence adviser after receiving a $NZ7.43 per share approach, say sources.

Australian Super is working with Morgan Stanley.

The company’s shares last traded at $6.80, with its market value at $4.06bn.

Infratil, which is also listed in Australia, has paused trading ahead of an announcement on the offer on Tuesday.

The company is a major investor in Australian infrastructure and owns airports, electricity generators, retailers and telecommunication networks, with operations also in New Zealand and the United States.

The company is managed by Morrison & Co.

Among Infratil’s assets are a 50.76 per cent in Trustpower, a 60 per cent interest in renewable energy business Tilt Renewables and Longroad Energy Partners.

It owns Vodafone New Zealand and recently acquired an interest in the Australian healthcare business Qscan from private equity firm Quadrant in a deal valuing the business at $730m.

The company also owns an interest in the Canberra Data Centres business.

It comes as Infratil’s share price has recently rallied at a time that renewable energy, healthcare and data centre assets remain in high demand amid a low interest rate environment.

The deal will likely see Infratil cut ties with its current manager Morrison, which could create cost saving benefits for Australian Super.

No doubt one area of focus will be whether the deal gains government support from an Overseas Investment Office perspective, given that it is one of New Zealand’s largest infrastructure owners.