Channel Infrastructure aims to raise $50 million in equity

Channel Infrastructure’s Marsden Point Energy Precinct concept.
Photo: Supplied/channel infrastructure

• Channel Infrastructure to raise $50 million through an equity offering
• Shareholders offered one new share for every 12.1 currently owned, at a 10 percent discount price of $1.60 each
• Money to be used for investment projects over the next two years
• Company becomes bitumen import terminal for Higgins Contractors

Channel Infrastructure is set to raise around $50 million for new expanded storage facilities as it has agreed to build a bitumen import terminal for Fletcher Building subsidiary Higgins Contractors at Marsden Point.

The company said it had completed three deals this year for expanded storage of aircraft and other fuels, and the bitumen deal, which would require between $55 million and $66 million in capital expenditures.

“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 the acquisition of other terminal assets outside the US at Marsden Point,” said CEO Rob Buchanan.

He said it also diversified Channel’s revenue base and would reduce its dependence on fuel storage imports.

The three projects are part of the company’s strategy to turn the former oil refinery into a broader energy hubincluding the production of biofuels.

Shareholders will be offered one new share for every 12.1 currently owned, at a price of $1.60 each, a 10 percent discount to the last traded price on Friday.

Higgins said the Marsden Point bitumen plant, the second after Napier, would meet North Island road needs and the wider industry.

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