Infrastructure investment company Infratil will return $120 million to shareholders as a special dividend and share buyback, after selling its Australian energy assets for $670 million.
Infratil Energy Australia assets Lumo Energy and Direct Connect were sold to Snowy Hydro on September 30, says a statement from the company.
It’s keeping some of the funds for future investments and expects to return more capital to investors should future plans not proceed.
Infratil will pay $84 million to shareholders as a 15 cents per share special dividend and spend $36 million in an on-market share buyback.
“The recent asset sales have resulted in Infratil having more than $600 million on deposit with its banks and low net gearing,” says chief executive Marko Bogoievski.
”Part of this is earmarked for investment. Infratil continues to have a significant number of internal and external investment initiatives under development.
“If investment plans do not progress as hoped, consideration will be given to increasing the amount returned to shareholders in 2015/16.”
