Infratil Instalment Shares
Introduction
In early August 2007, Infratil announced that it was undertaking a renounceable rights issue of up to 100,000,000 instalment shares with a record date of 31 August 2007. Rights to the instalment shares traded on the NZX market throughout September 2007 with the closing date to apply for the Instalment Shares being Wednesday, 3 October 2007. The Rights commenced trading on the NZSX market on 3 September 2007 under the code IFTRC. Trading in the Rights ceased on 1 October 2007.
The instalment shares were allotted and commenced quotation on the NZX market on 8 October 2007 under the code IFTCB. Tbere are approximately 88 million instalment shares on issue.
Frequently Asked Questions
What are the Instalment Shares?
The instalment shares are partly paid ordinary shares of Infratil. Upon subscription, the first instalment of 1.00 per instalment share was paid. When the second instalment of $1.00 per instalment share is paid to Infratil, an instalment share will become an ordinary share and ranks equally in all respects with all other Infratil ordinary shares on issue.Prior to the second instalment being paid, an instalment share confers on its holder half of the voting and dividend rights that an ordinary share confers. For example, if a dividend of 6 cents per ordinary share is declared, then a dividend of 3 cents per instalment share is also declared.
Do I have to pay the Second Instalment?
Yes. The holder of an instalment share has a legal obligation to pay the second instalment during the second instalment payment period (14 July 2008 until 8 August 2008) irrespective of Infratil's prevailing operational performance or financial position.A person who holds instalment shares at the conclusion of the payment period and has not paid the second instalment will have their voting and distribution rights on the instalment shares immediately cease and can be liable to pay interest on the second instalment. Infratil may deduct the amounts owing in respect of the instalment shares from distributions declared on that person's ordinary shares and/or require the forfeiture of their instalment shares. Instalment shares will also be non-transferable from 8 August 2008 without Infratil's prior consent.
Before buying instalment shares, investors need to carefully consider this obligation to pay the second instalment and ensure that they will have sufficient financial resources available to meet this second instalment obligation during the payment period.
How do I pay the Second Instalment?
Instalment holders may pay the second instalment on and from 14 July 2008 (but not before). The second instalment must be paid on or before 8 August 2008.
In early July 2008, Infratil will send to all instalment holders a form to accompany payment of the second instalment and this form will also be available here on its website. Instalment holders will need to complete that form and attach payment of $1.00 per instalment share held and send this to Infratil's share registrar in accordance with the instructions on that form.Can I sell my Instalment Shares?
Yes but only until 8 August 2008 when if the second instalment has not been paid it will be overdue and any instalment shares on issue become non-transferable. When the second instalment is paid you no longer hold instalment shares, but then hold ordinary shares which can be traded in the same manner as all other ordinary shares on issue.The instalment shares are traded on the NZSX under the code "IFTCB". You can sell your instalment shares and keep your ordinary shares and warrants or vice versa. Recent market prices for instalment shares are shown in the financial section of major New Zealand daily newspapers or you can click click here IFT here for the current price information from NZX. Contact your sharebroker for advice on selling your instalment shares.
Can I buy more Instalment Shares?
Yes. Contact your sharebroker for advice on buying more instalment shares.How do I get more information about the Instalment Shares?
All shareholders as at 31 August 2007 received a copy of the Investment Statement that gives a comprehensive description of the instalment shares. A copy of the Investment Statement can be downloaded here or requested by writing to the Company Secretary of Infratil or emailing This e-mail address is being protected from spam bots, you need JavaScript enabled to view itA copy of the short-form Prospectus for the instalment shares can be downloaded here. The 2007 annual report of Infratil that is referred to in the Prospectus can be downloaded here.
Click here for a copy of the Entitlement Acceptance Form for this offer.
What are the dividends?
The Instalment Shares will receive 50% of Infratil's final dividend for financial year ended 31 March 2008. Shareholders can't pay the Second Instalment until after the Record Date for this dividend.
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