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Hunt Consolidated shelves 'going private' plans for InfraREIT

Hunt Consolidated Inc. decided not to pursue a "going private" transaction for InfraREIT Inc. at present, but it said it may explore the option in the future, according to a May 24 company filing.

Hunt Consolidated, InfraREIT's largest shareholder, in a Jan. 16 Schedule 13D filing stated its intent to evaluate a "going private" transaction with InfraREIT, which would require obtaining outside financing from one or more investors. Hunt also said that in any "going private" transaction, it would maintain a substantial equity stake and a substantial degree of influence over the business and affairs of InfraREIT.

In its latest amended Schedule 13D filing, Hunt said some investors have shown interest in directly acquiring InfraREIT as an alternative to the "going private" transaction. Hunt further said that it has discussed with potential third-party buyers the arrangements for Hunt and its affiliates, including the possible termination of certain agreements between Hunt and InfraREIT.

In a May 24 new release, InfraREIT said it has not participated in Hunt's negotiations with third parties and that "no assurances can be given that InfraREIT will agree to a transaction proposed as a result of the efforts described in Hunt's 13D amendment."

Earlier this month, InfraREIT received approval from its board to forge ahead on shifting to a C-corporation structure. The board has not set any hard deadlines for deciding the company's new direction but it could include combining Sharyland Utilities LP and Sharyland Distribution & Transmission Services LLC and terminating the leases between the entities, InfraREIT CEO and President David Campbell said during the company's May 3 earnings call.