Challenger Infrastructure Fund (CIF) has sold its remaining stake in UK water company Southern Water for £168 million (€186 million; $278 million).
The Australian listed fund said in a stock exchange filing it is selling the 15.6 percent stake in the regulated utility to an undisclosed buyer, with settlement of the transaction expected to take place in January next year.
CIF said the proceeds from the sale would go towards a number of the firm’s capital management initiatives over the next one to two years, including the repayment of its A$122.1 million redeemable preference shares, improving its leverage and deleveraging the fund. It also said the proceeds would go towards the on-market buy-back of up to 10 percent of CIF’s ordinary shares.
Following the transaction CIF now owns controlling stakes in two assets, an 80.4 interest in independent gas transporter Inexus and a 66.2 percent stake in storage terminal operator LBC Terminals.
CIF’s share price closed at an unchanged A$2.01 earlier today.