Australia’s sovereign wealth fund offered to buy the assets of the country’s largest listed infrastructure fund for A$2 billion (US$2.1 billion), seeking steady earnings from airports across the nation.
The A$77 billion Future Fund will pay the equivalent of A$3.22 for each share of the Australian Infrastructure Fund, which will distribute the proceeds to security holders, according to a statement from the infrastructure fund to the stock exchange Friday. That’s 22% higher than Thursday’s closing price.
The fund’s assets include stakes in Perth Airport, Melbourne Airport and Queensland Airports. There’s no guarantee a deal will be reached, the company said. Profit in the year ended June 30 fell 8% to A$196 million, the company said in a separate statement Friday.
The proportion of the Future Fund’s assets allocated to infrastructure jumped to 5.6% as of March 31 from 2.5% in 2009, according to the fund’s website.
