Snippets Corner: 11 November 2009 – CIF
November 11, 2009
Challenger Infrastructure Fund (CIF) announced that it has entered into an agreement to sell its remaining 15.6% holding in Southern Water for $304 million. The fund said the sale price was completed at the 30 June 2009 Net Asset Value and represents a multiple of 1.26x Southern Water’s regulated capital value. Challenger Infrastructure expects settlement to occur on or before 20 January 2010. The fund said the divestment would allow it to invest in high growth opportunities within its existing portfolio as well as the ability to fund other capital management initiatives. Challenger Infrastructure said the transaction also includes the sale of the balance of CIF’s temporary loan ($12.5 million including interest) invested in the company in March 2009, to the extent that it has not already been repaid prior to settlement.
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