UIL buys shares in wave technology developer

Monday 30 May 2016 12:36 PM

UIL buys shares in wave technology developer Carnegie Wave Energy

By Sophie Boot

May 30 (BusinessDesk) - Long-standing Infratil investor UIL, formerly known as Utilico Investments, has become a shareholder in ASX-listed Carnegie Wave Energy.

UIL acquired 5.07 percent of Carnegie from Renewable Energy Holdings for an undisclosed price, it said in a statement. The acquisition makes UIL the second-largest shareholder in Carnegie, and there is a 12-month trading escrow on the shares.

Carnegie is the owner and developer of patented CETO wave energy technology which converts ocean swells into zero-emission renewable power and desalinated freshwater. The technology is nearing the end of its commercialisation phase with the development and delivery of its CETO 6 product, the company says.

UK-listed UIL has been whittling down its stake in infrastructure investment firm Infratil, shedding 6 million shares on Friday for $19.9 million leaving it with just 2.5 percent of the company. It was one of the firm's biggest shareholders with a 20 percent stake before it started selling in 2010.

Infratil, which is listed on the NZX, is in the process of reshaping its own investment portfolio with a focus on renewable energy, the retirement sector, social infrastructure such as housing, telecommunications infrastructure, and waste management. It has been looking to deploy $1 billion of funds and two weeks ago said it would spend A$392 million on a 48 percent stake in Australia's Canberra Data Centres.

The shares rose 0.3 percent to $3.36 and have increased 2.3 percent this year. The stock is rated an average 'hold' based on five analyst recommendations compiled by Reuters with a median price target of $3.53.

(BusinessDesk)

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