Utility investment firm Spark Infrastructure Group (ASX: SKI) said on Wednesday that it has launched capital raising of up to $295 million that the company would utilise to pay off debts of up to $200 million and fund its $85 million equity investments.

The company said that new Spark securities would be issued in a two for seven underwritten entitlement offer at $1 per share while announcing at the same time that a restructure proposal would be presented to its shareholders, in which Spark securities would be consolidated from a five-stapled security to a dual-stapled security.

The move, according to Sparks, would maximise its shareholders value benefits as the company is positioning to shift from a yield-focused security into an investment offering solid distribution yield and increased capital growth through the company's holdings in Australia's electricity providers.

At present, the investment group is maintaining 49 percent interests in the country's three electricity distributors, namely ETSA in South Australia and Powercor and CitiPower both in Melbourne.

Spark Infrastructure chairman Stephen Johns said that once approved by securityholders, the proposed restructure "will also deliver a more transparent ownership structure and a more sustainable distribution profile supported by operating cashflows."

Mr Johns said that Spark securityholders are scheduled to meet by November or December to discuss and vote on the proposed restructure.

The company also revealed that it is issuing distribution guidance of 5.6 cents per security for the second half of calendar 2010, noting that distributions next year could reach 9.11 cents per security.