The Infratil Ltd (ASX: IFT) share price could edge lower this morning after the company announced the completion of its Vodafone New Zealand acquisition.
What did Infratil announce this morning?
On 14 May 2019, a consortium comprising lnfratil and Brookfield Asset Management announced that it had executed a conditional agreement to acquire Vodafone New Zealand from Vodafone Group Plc for an enterprise value of NZ$3.4 billion (A$3.27 billion).
Following the Commerce Commission clearance and Overseas Investment Office approvals, which were announced on 12 July, lnfratil this morning confirmed that the acquisition was completed today.
lnfratil's Chief Executive Marko Bogoievski said: "We are very pleased to complete the acquisition and look forward to working with Brookfield and supporting the Vodafone NZ management team in bringing world-class services to New Zealanders".
What does this mean for the Infratil share price?
Given the mildly negative reaction to the news on 14 May, when the Infratil share price fell 1.1% to $4.15 per share, I'd expect the Infratil share price to trade lower this morning.
However, I think a major swing against the company's stock remains unlikely with much of the transaction already being priced in, bar the final regulatory approval risk.
The Infratil share price has climbed 28.7% higher so far this year as an investment boom in the renewable energy sector and bullish run for domestic equities has seen the ASX enjoy its best start to the year since 1991.
The S&P/ASX 200 (INDEXASX: XJO) index yesterday smashed its all-time high as the domestic share market has continued to perform strongly despite headwinds for global economic growth.
However, the Infratil share price has managed to outpace the ASX 200 and many of its Energy sector peers, with the AGL Energy Ltd (ASX: AGL) share price managing to gain just 4.5% in the last 7 months.
The Infratil share price is currently valued at $4.39 per share with a market cap of $2.9 billion, however, the stock remains thinly traded and tightly held by a few cornerstone investors.
