Channel Infrastructure aims to raise $50m in share offer
· RNZ- Channel Infrastructure to raise $50m through share offer
- Shareholders offered one new share for every 12.1 currently held at 10 percent discount price of $1.60 each
- Money to be used for capital spending projects over next two years
- Company to become bitumen import terminal for Higgins Contractors
Channel Infrastructure is to raise about $50 million for new expanded storage facilities as it agreed to build a bitumen import terminal for Fletcher Building subsidiary Higgins Contractors at Marsden Point.
The company said it had struck three deals this year for expanded jet and other fuel storage, and the bitumen deal, which would require between $55m-$66m in capital spending.
"The agreement we are announcing today with Higgins reflects our vision to be a world-class energy infrastructure company and the significant growth opportunities we have ahead of us to provide additional storage, develop the Marsden Point Energy Precinct and explore acquisition of other terminal assets outside Marsden Point," chief executive Rob Buchanan said.
He said it also diversified Channel's revenue base and would reduce its dependence on fuel import storage.
The three projects are part of the company's strategy to turn the former oil refinery into a broader energy hub, including biofuel manufacture.
Shareholders will be offered one new share for every 12.1 currently held at $1.60 each, a 10 percent discount to the last traded price on Friday.
Higgins said the Marsden Point bitumen facility, its second after Napier, would supply its upper North Island roading needs as well as the broader industry.
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