Chorus issues additional CIP1 warrants to government infrastructure fund

Chorus Limited ( (NZ:CNU) ) has issued an announcement.

Chorus Limited has issued an additional 266,041 unquoted CIP1 warrants to National Infrastructure Funding and Financing Limited, formerly Crown Infrastructure Partners, at no consideration. These warrants form part of a long-standing ultra-fast broadband funding arrangement dating back to 2011 and are exercisable for ordinary Chorus shares at a strike price tied to achieving a total shareholder return of 16% per annum.

The new issue lifts the total number of CIP1 warrants on issue to 10,543,386 and aligns with the repayment schedule of related CIP1 debt and equity securities running through 2036. The structure means the state-backed investor will only benefit from exercising the options if Chorus delivers strong long-term shareholder returns, reinforcing an incentive-based partnership model between the company and the government’s infrastructure funding vehicle.

The most recent analyst rating on (NZ:CNU) stock is a Sell with a N$7.45 price target. To see the full list of analyst forecasts on Chorus Limited stock, see the NZ:CNU Stock Forecast page.

More about Chorus Limited

Chorus Limited is a New Zealand-based telecommunications infrastructure company that owns and operates much of the country’s fixed-line network. It focuses on providing wholesale broadband and related network services to retail service providers, underpinning the delivery of high-speed internet and data connectivity nationwide.

Average Trading Volume: 243,420

Technical Sentiment Signal: Buy

Current Market Cap: N$4.42B

Learn more about CNU stock on TipRanks’ Stock Analysis page.