CIF: Risk reduced, upside improved

A deal to sell one of Challenger Infrastructure Fund's investments cements the upside for this listed infrastructure investor.

Challenger Infrastructure Fund made an important announcement yesterday. Stemming from the strategic review first announced last August, the fund is selling its 66.2% stake in LBC Tank Terminals—its most valuable investment—to a group of Dutch and Australian superannuation investors for a total of US$277.8m. We had suspected its other asset, Inexus, was the one on the chopping block, but the more we think about this deal the more it makes sense.

After deal costs, and with the exchange rate already locked in, CIF expects to receive net proceeds of A$281m (the recent fall in the AUD has proven a nice fillip).

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles