Infratil Warrants
Introduction
Infratil has one series of Warrants on issue. Warrants entitle the holder to buy one fully paid Infratil share per warrant. Two previous seriesexpired "in the money" and were exercised in 2004 and 2009/10 respectively.
IFTWC Expire 29 June 2012
These warrants will lapse unless they are exercised by 5pm Friday 29 June 2012. The exercise price is $4.12 and by paying this sum a holder will receive an ordinary Infratil share which will then be identical with all other Infratil shares, including voting rights and entitlement to dividends.
The IFTWC may be exercised at any time prior to the expiry date.
The IFTWC are listed on NZX and the recent market price range has been between 0.5 cents and 3 cents. It would not be sensible to exercise the IFTWC at the exercise price of $4.12 while the ordinary shares trade at a much lower price. For IFTWC current price information from the NZX click here
To exercise the IFTWC Warrants you must complete the IFTWC Warrant Exercise Form (click here) and post with your cheque for $4.12 for each IFTWC Warrant you are exercising to Infratil’s Share Registrar. Contact details are provided on the relevant form, or otherwise call the Share Registrar on 0800 377 388.
Background/History
Infratil has made three issues of warrants. Both the IFTWB and IFTWC were issued at no cost to shareholders and at the time of issue had five year lives. The IFTWA were issued stapled to Infratil's first bond issue.
The IFTWB and IFTWC were issued to improve market liquidity for Infratil shares by creating a new class of instrument which would encouraging trading. It was also hoped they would be of value to shareholder recipients by increasing their alternative courses of action. (eg. A shareholder needing cash but wanting to retain an Infratil investment could sell shares and buy warrants).
When both the IFTWA and IFTWB reached their expiry date the share price was higher than the exercise price and consequently most were exercised. This seems less likely to be the case with the IFTWC which is presumably reflected in their current market price.
When the IFTWB fell due in 2009 it occurred that the exercise price and the then share price were very close (about $1.60). This caused a considerable amount of market confusion (investors faced a dilemma as they were obliged to value Infratil inclusive and exclusive of the warrant exercise proceeds). To defuse this predicament Infratil took two steps. Holders of IFTWB were allowed to exercise the warrants in two bites and the exercise was underwritten. Investors then knew that Infratil was going to receive the additional equity (care of the underwrite) while the funding pressure associated with the exercise was alleviated care of the two stage exercise. These arrangements were well received and most IFTWB were exercised.
These actions represented a highly unusual situation and holders of IFTWC should not anticipate a repeat.
A copy of the IFTWC Investment Statement can be downloaded (pdf) or requested by writing to the Company Secretary of Infratil or emailing
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A copy of the prospectus can also (pdf) be downloaded.
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