IFT - Infratil

[kiora]

Great initiative by Vodafone
https://www.stuff.co.nz/business/118909669/vodafone-gives-staff-friday-afternoons-off-through-summer

[macduffy]

Great initiative by Vodafone
https://www.stuff.co.nz/business/118909669/vodafone-gives-staff-friday-afternoons-off-through-summer

Just don't contact the help desk on Friday afternoons!

:ohmy:

[BeeBop]

Another NZ lifestyle choice....wonder why productivity is not so high? It must be a nice country to work in.

[Ggcc]

Another NZ lifestyle choice....wonder why productivity is not so high? It must be a nice country to work in.
It is really expensive lol

[kiora]

More bang for your buck.Mega trend?
https://www.scoop.co.nz/stories/BU2001/S00135/vodafone-launches-ginormous-data-plans.htm?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Thursday+23 +January+2020

[ratkin]

Starting a share buy back, either because they think they will be great value, or an attempt to control the price. Quite a few of my ex stocks suddenly have buy backs in place.

[bigbruce]

They have the virus, 3% death rate, buyback 3% of issued shares.
PE 175?

[kiwijay]

I'm surprised Infratil isn't any lower given their investments in European Airports and WIAL. But overall they're a pretty diversified business and not too worried about their future. I think will head lower on Monday given NZ's first case causing some undued panic among our peers.

[ratkin]

I'm surprised Infratil isn't any lower given their investments in European Airports and WIAL. But overall they're a pretty diversified business and not too worried about their future. I think will head lower on Monday given NZ's first case causing some undued panic among our peers.

Amazing run up last few years and some good investments, were probably priced for perfection anyway. This slowdown might actually present them with some good possibilities, but yeah will go down with the ship.
Honestly I think it is a good thing, at some point will be a great buy and will not have to worry about them being overvalued anymore

[kiora]

I'm surprised Infratil isn't any lower given their investments in European Airports and WIAL. But overall they're a pretty diversified business and not too worried about their future. I think will head lower on Monday given NZ's first case causing some undued panic among our peers.

KJ your information looks a little outdated by a few years

[kiwijay]

Oops! For some reason brain went back a few years! Corrected, no more airports in Europe!

[kiora]

They have the virus, 3% death rate, buyback 3% of issued shares.
PE 175?

Possibly too far out for some but 2022 forecast PE to be 10.Make of it as you will.
https://www.marketscreener.com/INFRATIL-LIMITED-6494631/financials/

[kiora]

How much is Vodafone benefiting from this?
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12316220

[BlackPeter]

SP dropped below the MA 400, which brought IFT back onto my shopping list. However - fundamentals still looking pretty dear and while the downward momentum keeps going it is anyway not the time to buy.

[Rowdy Flat]

They're not. Have you read the article?

[Valiant]

I see they're the share buyback is in full effect. Making the most of the opportunity presented - the question I have is if this is the best use of their cash given the current worldwide situation. I'm not a holder, haven't owned before and have kicked myself for not buying when it was previously in the low 3's (approx. 2 years ago I think). Looking for a sound entry point, anyone have a target price in mind? Cheers

[macduffy]

Yes, that's always the question with share buybacks. IFT have been well managed for many years now; I'm happy to leave it in their capable hands.

:cool:

[kiora]

I see they're the share buyback is in full effect. Making the most of the opportunity presented - the question I have is if this is the best use of their cash given the current worldwide situation. I'm not a holder, haven't owned before and have kicked myself for not buying when it was previously in the low 3's (approx. 2 years ago I think). Looking for a sound entry point, anyone have a target price in mind? Cheers

Target price $5.50 less wellington airport carrying cost for a year :)

[Valiant]

Target price $5.50 less wellington airport carrying cost for a year :)


At the current price you're in luck! At this stage who knows what the WIAL costs will add up to be - all I can foresee is that the longer this shutdown on boarders and air travel continues the bigger they'll be.
I would be expecting IFT to disclose to the market any material changes similar to AIA's announcements - or am I to optimistic?!

[bull....]

At the current price you're in luck! At this stage who knows what the WIAL costs will add up to be - all I can foresee is that the longer this shutdown on boarders and air travel continues the bigger they'll be.
I would be expecting IFT to disclose to the market any material changes similar to AIA's announcements - or am I to optimistic?!

wellington airport must be taking a hit , windfarm construction must be up in the air with oil at $25 , telstra saying today they are expecting impact from virus and they still doing buyback?

[macduffy]

At the current price you're in luck! At this stage who knows what the WIAL costs will add up to be - all I can foresee is that the longer this shutdown on boarders and air travel continues the bigger they'll be.
I would be expecting IFT to disclose to the market any material changes similar to AIA's announcements - or am I to optimistic?!

I would expect that it would. The investment in WIAL is sufficiently material to IFT for change to require disclosure IMO.

[horus1]

Oil does not affect the Electricity sector,Tiwai does and Al is way down.

[macduffy]

Well, we got a statement from IFT but really nothing to say at this stage.
:closed eyes:

[kiora]

I would expect that it would. The investment in WIAL is sufficiently material to IFT for change to require disclosure IMO.

WIAL is only around 17% of their business if that, after buying Vodafone.They have finished $300 m of capex
IFT capital management seems pretty good to me.If their bonds where to drop in value I am sure they would be in there buying up

[value_investor]

I see they're the share buyback is in full effect. Making the most of the opportunity presented - the question I have is if this is the best use of their cash given the current worldwide situation. I'm not a holder, haven't owned before and have kicked myself for not buying when it was previously in the low 3's (approx. 2 years ago I think). Looking for a sound entry point, anyone have a target price in mind? Cheers

I like the buyback a lot. Wish they would buyback even more stock than they are now. Think its an incredibly pragmatic move to make. The benefits won't be seen until the recovery.

[ratkin]

I like the buyback a lot. Wish they would buyback even more stock than they are now. Think its an incredibly pragmatic move to make. The benefits won't be seen until the recovery.

The problem with that is companies always seem to start the buy backs too soon, they have probably been buying back stock way above the current price, and their is also the danger that buying back stops it falling as much.
Would be better to let the price tank and start the buyback once the chart looked more promising.

[kiora]

"The problem with that is companies always seem to start the buy backs too soon, they have probably been buying back stock way above the current price, and their is also the danger that buying back stops it falling as much.Would be better to let the price tank and start the buyback once the chart looked more promising."
Are these "musings" correct?
This would be like trying to control Coronavirus with natural immunity in my view

There is nothing like price drops to install fear in the markets.Confidence needs to come back in to the market and this will be part of their reasoning.
Its tanking like most stocks I suspect due to lack of liquidity in the total market.
Passive funds will have needed liquidity due to redemption's in their funds and selling will be indiscriminate and with out logic .
Have they been buying too soon?.I have been thinking they have been very disciplined
IFT only started this buyback in Feb
https://stocknessmonster.com/news/ift.nzx/2020/
In daily lots of 50,000 to start with when it was above $4
Larger lots when in high $3

[bull....]

hope they cancel there buyback , repay debt is more important now

[BlackPeter]

Holding a number of blue chip bonds ... including CNU020 and IFT190. Noticed in the last couple of weeks the interest rates for bonds going up, presumably reflecting the markets concern that some of these companies might drop somewhat in their credit rating.

Interesting however to compare these rates ... the interest rates demanded for IFT190 (and other IFT bonds) basically went through the roof compared to other good corporate NZ bonds. Just wondering whether the market wants to tell us something?

yellow line: IFT190, blue line: CNU020

11168

Is this just Wellington Airports - or do we need to take a bit better look at the other IFT investments as well?

[kiora]

Are you seeing/interpreting the the same rates I am seeing BP?
I am seeing IFT 120 interest rate here at 6 % with not a lot of volume.Does this mean a holder is trying trying to raise cash? or liquidating assets?

https://stocknessmonster.com/charts/ift190.nzx/
https://stocknessmonster.com/charts/cnu020.nzx/

I would have thought IFT would be purchasing these as well as doing the buy back?

[Bjauck]

Holding a number of blue chip bonds ... including CNU020 and IFT190. Noticed in the last couple of weeks the interest rates for bonds going up, presumably reflecting the markets concern that some of these companies might drop somewhat in their credit rating.

Interesting however to compare these rates ... the interest rates demanded for IFT190 (and other IFT bonds) basically went through the roof compared to other good corporate NZ bonds. Just wondering whether the market wants to tell us something?

yellow line: IFT190, blue line: CNU020

11168

Is this just Wellington Airports - or do we need to take a bit better look at the other IFT investments as well?

Mixed signals from bonds?
I have WIA020 bonds and they are still at the same price as at the beginning of the month. I also have IFT240 bonds and their price has dropped by about -8% (or -6.5% net after the interest payment.

[BlackPeter]

Are you seeing/interpreting the the same rates I am seeing BP?
I am seeing IFT 120 interest rate here at 6 % with not a lot of volume.Does this mean a holder is trying trying to raise cash? or liquidating assets?

https://stocknessmonster.com/charts/ift190.nzx/
https://stocknessmonster.com/charts/cnu020.nzx/

I would have thought IFT would be purchasing these as well as doing the buy back?

Well, this is what I am seeing:11172

Interest rate now up to 6.3%, which means that somebody is desperate to sell. If you are really keen to sell a bond, you need to reduce its purchase price, which increases the interest rate the buyer gets. I know, it requires a bit of rethinking from buying shares. Shares are quoted in sell (or purchase-) price, while bonds are quoted in resulting interest rate.

Agree - volume is not that high (but not that low, either). Bond markets in NZ are in general not that liquid - i.e. read out of that what you want.

[kiora]

I saw 45% on your earlier post here
https://www.sharetrader.co.nz/attachment.php?attachmentid=11168
With no explanation what that was about.How would a reader interpret that?
And 6.3% on your latest post here
https://www.sharetrader.co.nz/attachment.php?attachmentid=11172&d=1585437757

I read that as a totally different story

[winner69]

I saw 45% on your earlier post here
https://www.sharetrader.co.nz/attachment.php?attachmentid=11168
With no explanation what that was about.How would a reader interpret that?
And 6.3% on your latest post here
https://www.sharetrader.co.nz/attachment.php?attachmentid=11172&d=1585437757

I read that as a totally different story

It’s gone from a yield of 3.8% to 6.3%

And 65% increase is a staggering increase in yield

But the value of the bond itself is only down a bit

And even on Friday the $1 face value things sold for $1.015

[BlackPeter]

I saw 45% on your earlier post here
https://www.sharetrader.co.nz/attachment.php?attachmentid=11168
With no explanation what that was about.How would a reader interpret that?
And 6.3% on your latest post here
https://www.sharetrader.co.nz/attachment.php?attachmentid=11172&d=1585437757

I read that as a totally different story

I assume you understand the difference between absolute and relative measure? 6.3% is the absolute return of this bond if you bought it last Friday.

45% was the relative change in its return since the start of the comparison.

Clear like mud?

[kiora]

From the 2019 Interim report
“A second key risk comes from the structure of the balance sheet. The big learning from the Global Financial Crisis (GFC) was the need to focus not so much on interest rate risk as liquidity risk, especially the ability to refinance debt when times get hard. A lot of Board time focuses on liquidity risk, the liquidity profile, and the ability to withstand a GFC-type even”

[Rowdy Flat]

An announcement from IFT due tomorrow.






Yesterday's 'Telcowatch' report for Q1 March 2020 shows For all three months in Q1 2020, both Skinny and Vodafone saw an increase in market share compared to the Q4 2019 quarter.While both 2degrees and Spark saw a decrease in their year-on-year market share growth in Q1 2020. However; Vodafone's market share growth has slowed markedly.

[bull....]

looks like they are taking a hit. lower dividend and lower guidance . a majority of there portfolio is going to be impacted by covid going forward

[mfd]

Expecting Wellington Airport to be running at 66% of previous levels by next April and 85% in April 2022. Most of their businesses impacted in some way - lower electricity use, less roaming income for Vodafone, retirement home resales expected to be impacted. CDC not so bad and Tilt have most of their revenue locked in and are throwing $169 million back to IFT by capital return.

Headwinds, but 30% down in 2 months and traded as much as ~45% down. I'd have thought they'd be fairly resilient compared to a lot of other companies.

[Joshuatree]

'Seriously challenged' Wellington Airport in talks with banks (https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12323645)

[Bjauck]

'Seriously challenged' Wellington Airport in talks with banks (https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12323645)

"That said, Bogoievski said it was prudent to wait until the full-year result in May to determine whether the full dividend should be paid."Knowing what we know today, I would expect to still pay out a substantial portion of that."

Sounds like Infratil is well-placed to underwrite the Wellington Airport capital needs. Unlike many NZ companies it is still intending to pay a dividend. AIA has already had talks with its bankers and then undertook a capital raising.

[winner69]

"That said, Bogoievski said it was prudent to wait until the full-year result in May to determine whether the full dividend should be paid."Knowing what we know today, I would expect to still pay out a substantial portion of that."

Sounds like Infratil is well-placed to underwrite the Wellington Airport capital needs. Unlike many NZ companies it is still intending to pay a dividend. AIA has already had talks with its bankers and then undertook a capital raising.

Wellington ratepayers aghast at bailing out the the dastardly rich money men

Wonder if WIAL still collecting full rentals from Warehouse, Briscoes, Kathmandu etc in their shopping complex.

[kiora]

Wellington ratepayers aghast at bailing out the the dastardly rich money men

Wonder if WIAL still collecting full rentals from Warehouse, Briscoes, Kathmandu etc in their shopping complex.

Why wouldn't they support it if they part own it as well?
How is it it structured?
Is it a loan?
Isn't it an important part of their infrastructure Wellington needs?
Of course along with their other infrastructure that ,like other councils,have been poor at maintaining

https://wellington.govt.nz/your-council/news/2020/04/airport-support-underwrite-approved

"Wellington City Council considered a proposal from Wellington International Airport Limited (WIAL) to, alongside the other shareholder Infratil

[artemis]

Infratil / CDC expanding into NZ, 2 new data centres in Auckland with room for more as needed..

[mondograss]

Infratil / CDC expanding into NZ, 2 new data centres in Auckland with room for more as needed..

Interestingly it comes on the back of Microsoft announcing recently that they were going to create an Azure region for NZ, and I note that they have an existing tie in with CDC so possibly they're going to be the main tenant.

[kiora]

Pop
No one else holding?
Good reliable dividend anyone?

[macduffy]

Pop
No one else holding?
Good reliable dividend anyone?

Holding since the IPO some 20 odd years ago and adding a few from time to time.

:)

[kiora]

Holding since the IPO some 20 odd years ago and adding a few from time to time.

:)

Same then sold head shares & loaded up with warrants
17.5% compounding return or some such.
A good investing space IMHO,unparalleled management

[RGR367]

Same then sold head shares & loaded up with warrants
17.5% compounding return or some such.
A good investing space IMHO,unparalleled management

Got heaps of them too. No need to worry or even need to talk about it for they've been on the cabinet bottom drawer for a while now as I classed it already as a boring stock :cool:

[kiora]

This is why 5G,AI & renewable Energy so synergistic
https://finance.yahoo.com/news/its-driving-up-the-heat-density-within-data-centers-why-ai-and-5g-are-contributing-to-climate-concerns-155358619.html

[dreamcatcher]

I'm also holding heaps not added or sold any real bottom drawer stuff.

[horus1]

I keep adding to them .Well managed always have been

[Traderx]

I keep adding to them .Well managed always have been

Well managed remuneration for the manager too! Hard to believe how much has been extracted in last couple of years, on unrealised valuation too, for this reason I find it hard to invest..

[kiora]

Well managed remuneration for the manager too! Hard to believe how much has been extracted in last couple of years, on unrealised valuation too, for this reason I find it hard to invest..

You're right of course regarding investing in it.You and a lot of others including share brokers.

What needs to be assessed is the value the management add to the assets.
They don't sit around twiddling their thumbs which is all the boards of the gentailers need to do

[Traderx]

You're right of course regarding investing in it.You and a lot of others including share brokers.

What needs to be assessed is the value the management add to the assets.
They don't sit around twiddling their thumbs which is all the boards of the gentailers need to do

Agree they have done well, would they have done worse with a rem model that didn't take as much from the people with actual skin in the game? We will never know!

Similar debate to very highly paid CEOs I suppose.

Wouldn't it be great to be able to invest in Morrison and Co!

[Leftfield]

Wouldn't it be great to be able to invest in Morrison and Co!

I'm with you on that. I don't hold IFT because the Morrison management fees take the cream.

[kiora]

Agree they have done well, would they have done worse with a rem model that didn't take as much from the people with actual skin in the game? We will never know!
But they do have skin in the game! Their time & money

Similar debate to very highly paid CEOs I suppose.
Yes but they could have got /could get their own finance.Why do they need us/IFT?

Wouldn't it be great to be able to invest in Morrison and Co!

You can

https://hrlmorrison.com/what-we-offer/

[Brain]

I'm with you on that. I don't hold IFT because the Morrison management fees take the cream.

The management fees are very high but I have done well out of IFT. What really makes me pissed off is the money being paid to management and the boards of a number of companies that seem to specialise in decreasing shareholder wealth.

[Sideshow Bob]

Infratil announces NZ$300 million equity raising


9/6/2020, 8:30 amOFFER
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
9 June 2020
INFRATIL ANNOUNCES NZ$300 MILLION EQUITY RAISING TO FURTHER CAPACITY FOR GROWTH
Infratil is pleased to announce a NZ$300 million equity raising ("Equity Raising"), comprising a fully underwritten NZ$250 million Institutional Placement ("Placement") and an approximately NZ$50 million non-underwritten Share Purchase Plan ("SPP").

Proceeds from the Equity Raising will provide additional balance sheet flexibility to fund growth investments across Infratil’s existing portfolio companies and take advantage of new opportunities that may arise as a result of current market conditions.

Infratil’s diversified portfolio of businesses with strong long-term fundamentals has proved resilient to the impact of COVID-19. Infratil has a long track record of delivering strong returns to shareholders and maintains a ten-year total shareholder return target of 11-15% per annum.
Infratil maintains an attractive pipeline of growth opportunities across its portfolio and is continuing to evaluate additional opportunities in key growth sectors and new geographies. Infratil will continue to apply a disciplined approach to allocating capital when assessing potential investments.
The proceeds of the Placement and SPP (combined with cash on hand and currently available and undrawn debt facilities) will provide Infratil with NZ$514 million of total available liquidity. Following the Equity Raising, wholly owned group gearing will be reduced from ~34.9% to ~29.3% (assuming a successful raise of the full NZ$300 million).

UBS New Zealand is acting as Sole Lead Manager and Underwriter. Further details of the Equity Raising are as follows:
Placement

The fully underwritten Placement will be conducted through a bookbuild in which eligible institutional investors in New Zealand, Australia, and certain other jurisdictions will be invited to participate. A trading halt has been granted by NZX and ASX to facilitate the Placement.
The Placement will comprise the issue of 52.5 million new shares, representing approximately 8.0% of existing issued capital, to raise NZ$250 million. The Placement Issue Price of NZ$4.76 per new share represents a discount of 8% to the last NZX close price on Monday, 8 June 2020.
It is intended that eligible shareholders who bid for an amount up to their 'pro rata' share of new shares under the Placement will be allocated their full bid on a best efforts basis.

Share Purchase Plan
Infratil intends to offer the SPP to eligible shareholders in New Zealand and Australia, inviting them to apply for up to NZ$50,000 / ~A$47,000 of new Infratil shares free of any brokerage, commission and transaction costs. The SPP offer size is approximately NZ$50 million, which Infratil believes will enable the vast majority of Infratil's non-institutional shareholders to maintain their relative shareholdings if they desire. Infratil may accept oversubscriptions at its discretion, and if scaling of the SPP is required, it will be done with regard to existing shareholder holdings at the relevant record date, and otherwise at its discretion.
The price of new shares offered under the SPP will be the lower of the Placement Issue Price or a 2.5% discount to the 5-day VWAP of Infratil shares traded on the NZX during the last 5 days of the SPP offer period.

The record date for the SPP is 5 June 2020 (for shareholders on the Australian sub-register) or 8 June 2020 (for all shareholders except shareholders on the Australian sub-register), and the final terms of the SPP are expected to be announced in more detail on Friday, 12 June 2020. A SPP booklet, together with an application form, will be sent to eligible shareholders on Friday, 12 June 2020 and will be available to eligible shareholders on the website https://www.infratilshareoffer.com established for the SPP on the same day. The closing date for applications to be received from eligible shareholders is Thursday, 25 June 2020.
Eligible shareholders wishing to acquire new shares under the SPP will need to complete the application form.

The new shares issued under the Placement and SPP will rank equally in all respects with existing Infratil fully paid ordinary shares on issue.

Further information
Further details of the Equity Raising are set out in the Investor Presentation provided to the NZX and ASX today.
Any enquiries should be directed to:
Mark Flesher, Investor Relations, Infratil Limited mark.flesher@infratil.com

[Sideshow Bob]

In a trading halt now.

[JeffW]

Isn't it a bit odd then, that they suspended the DRP for the dividend due shortly?

[Bjauck]

Infratil announces NZ$300 million equity raising
...
Good move by IFT. The SP is at the level it was at the beginning of the year. Unlike with others, these shares are not being sold in a fire sale. Who knows how what turns Covid and the Covid recession will yet make. Infratil will have a good war chest. I am glad I have shares in IFT in my bottom drawer.

[Bjauck]

Isn't it a bit odd then, that they suspended the DRP for the dividend due shortly? I guess they were not sure if the market would irrationally sink the IFT SP.

[Ahgong]

"It is intended that eligible shareholders who bid for an amount up to their 'pro rata' share of new shares under the Placement will be allocated their full bid on a best efforts basis."

How does this work?

[macduffy]

I would think that individual shareholdings will be entitled to the same proportion of the SPP as they hold to the total non-insto shareholdings.

[Joshuatree]

@$4.76 what a great price for the company to swing that! Wish id never sold way back. This is a miserable margin compared with previous offers, well done to IFT. They will have over $500 mill to cherry pick bargains.

[Gerald]

These clowns were doing buybacks galore during the March fall to support and pump the SP, and decide to do a raise 2 months later :sneaky2:

[Bjauck]

Many of those buybacks were bought at under $4 share. So now they are issuing new shares at $4.75.

Pretty well done I would say. Definitely good for shareholders who have held through the epidemic so far?

[ratkin]

Great price for Infratil but is it a great price for existing shareholders? in terms of buying more.
I am guessing this will work in the same way as Auckland Airport offer. Put 50k in and end up getting most back. Although with the small discount could end up getting full amount

The website does not appear to be working

[RGR367]

These clowns were doing buybacks galore during the March fall to support and pump the SP, and decide to do a raise 2 months later :sneaky2:

Wasn't that the clue for you to buy more with them then? If not then you you were not really paying attention to your stock :cool: Just saying and join us of course for the SPP.

[Sideshow Bob]

These clowns were doing buybacks galore during the March fall to support and pump the SP, and decide to do a raise 2 months later :sneaky2:

Could give FBU a lesson in buybacks.....

[freddagg]

These clowns were doing buybacks galore during the March fall to support and pump the SP, and decide to do a raise 2 months later :sneaky2:

" Clowns " If that was a joke you should stick to your day job. If it wasn't a joke you should still stick to your day job.

[iceman]

So they've recently paid $ 125m in performance fees, $ 72.5m in dividends and $ 36.5m in management fees, $234 in total and now have a capital raise for $300 m. But according to the Herald:
A spokesman for Infratil said the first instalment of the performance fee was only one third ($42m) with the balance being paid over the next two years, subject to meeting ongoing valuations.

"We were also comfortable paying the dividend as it was supported by underlying cashflows - and impending Tilt capital return of $179m - and therefore had no bearing on the equity raise,"

Must be all perfectly normal then.

[whatsup]

T H lifted, wioll be very interesting where it trades,

[DazRaz]

$5.05 is the current match price. Dropping as market opening approaches.

[imarktu]

$4.960 on opening

[Joshuatree]

Hearing its been very heavily scaled back.

[see weed]

Just having a little smile to myself. Sold 10,000 on Monday for 5.19, will receive the div next. And get to buy them back at 4.76:t_up:.

[Joshuatree]

Why did you sell, what was the plan?

[see weed]

Why did you sell, what was the plan?
Dividend strip. Next taxi off the ramp is TPW next week on the 18/6/20. IFT was just a little strip while waiting for TPW.

[sb9]

Hearing its been very heavily scaled back.

Got a few on market y'day...seeing that they are on the lookout for further opportunities to invest.

[bull....]

Vodafone NZ estimates more than 100 job losses
A spokeswoman said 5-7 per cent of its roughly 2000-strong workforce could be cut thank to "significant financial impact" caused by the pandemic

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12339131

wonder how good next yr profit taking hits every where

[Traderx]

The fees taken by M&co are sickening. Have they ever heard of fiduciary duty? What is wrong with running an investment mandate to the benefit of the owners? Madness to be doing a cap raise while accruing/paying hundreds of millions in fees. Unbelievable that shareholders are so passive at being fleeced

(yes I know it was all by the book etc, its the ethics of it that get me)

[SailorRob]

Anyone know if there is any truth to the rumours they might be looking to buy the refinery? Perhaps if it's spun off from the pipeline infrastructure?

[Joshuatree]

The fees taken by M&co are sickening. Have they ever heard of fiduciary duty? What is wrong with running an investment mandate to the benefit of the owners? Madness to be doing a cap raise while accruing/paying hundreds of millions in fees. Unbelievable that shareholders are so passive at being fleeced

(yes I know it was all by the book etc, its the ethics of it that get me)

Their performance looks pretty good, check out the 10 year chart. I make it re 18.6% return per year including dilution.Dont know how many cap raises.

[Ogg]

Anyone know if there is any truth to the rumours they might be looking to buy the refinery? Perhaps if it's spun off from the pipeline infrastructure?

I know the source to that rumor. Seemed very unreliable. Doesn't mean it's not true though.

[ratkin]

Perfect timing from IFT another week and they may have struggled with 4.75

[dreamcatcher]

S&P/ NZ10 index IFT addition SKC removed

[see weed]

SP dropped below 4.75 today. Wonder if it will drop below 4.76 after spp?

[Southern Lad]

The issue price for shares issued under the SPP is the lesser of $4.76 and a 2.5% discount of the VWAP over the period from today until next Thursday. If the VWAP was equal to today’s closing price of $4.77, the issue price would be $4.65. So for anyone participating, the lower the share price through to next Thursday the better (assuming of course it’s only a temporary aberration of course).

[ratkin]

The issue price for shares issued under the SPP is the lesser of $4.76 and a 2.5% discount of the VWAP over the period from today until next Thursday. If the VWAP was equal to today’s closing price of $4.77, the issue price would be $4.65. So for anyone participating, the lower the share price through to next Thursday the better (assuming of course it’s only a temporary aberration of course).

Is it going to be manipulated? Seems unusually strong today compared with the rest of the market

[macduffy]

Is it going to be manipulated? Seems unusually strong today compared with the rest of the market

Not doing a very good support job, if that's the case. IFT own 11c today.

[Davexl]

Not doing a very good support job, if that's the case. IFT own 11c today.

Good buying opportunity for sizeable parcel, if scale down occurs from $50K

[Playa]

SPP worth taking up?What do you think?

[Ggcc]

I would love to participate, but I need to sell something to create money and if we were different times I would, but if this is a w shaped recovery I am not thinking it is worth it.

[Blue Skies]

SPP worth taking up?What do you think?


Am interested in others opinions also. Doesn't seem to be a clear choice (unlike AIA recently) but would appreciate more views.

[horus1]

It is a good buy long term Noy using the money to prop up firm but for new investment .

[macduffy]

I've held IFT since the IPO, one of my most successful investments and now one of the biggest. With the RBNZ flirting with negative interest rates I reckon a few more won't go astray so will be up for the SPP. I don't expect everyone to see it that way, but personally, I don't see much better value elsewhere.

[dibble]

It is a good buy long term Noy using the money to prop up firm but for new investment .

Agreed (esp the last bit). SPP or buy on market? Marginal so you have to believe in the product to be considering it.
If you can stomach the much-discussed mgmt fees and the odd duffer investment (German airports) they offer a decent alternative to managed funds by poking their noses into the management of their holdings and generally sticking to areas they know and have some sort of potential from synergies or natural growth.

[mfd]

SPP is at a 2.5% discount to market price over the next few days, no brokerage, and the money ends up with the company. No brainer for me, I've stuck some money in (about 50% of my total holdings so I expect to be scaled back).

[ratkin]

SPP is at a 2.5% discount to market price over the next few days, no brokerage, and the money ends up with the company. No brainer for me, I've stuck some money in (about 50% of my total holdings so I expect to be scaled back).


I am in too, all the money, including the institutional cash sets them nicely to take advantage of any opportunities. Of course there always a chance they will be available cheaper at some stage, but it is not a guarantee.

[winner69]

Going to take over Sky TV many reckon

[Davexl]

I am in too, all the money, including the institutional cash sets them nicely to take advantage of any opportunities. Of course there always a chance they will be available cheaper at some stage, but it is not a guarantee.

I'm joining in too, for the $50K, despite possible macro market gyrations with coronavirus and with the loss of dividend opportunities with other shares meaning I need to orient the portfolio towards growth opportunities - hopefully with a tail wind from all this govt stimulus going on, (except Wgt Airport).

[dibble]

SPP is at a 2.5% discount to market price over the next few days, no brokerage, and the money ends up with the company. No brainer for me, I've stuck some money in (about 50% of my total holdings so I expect to be scaled back).

You say no brainer but with this annoying type of raise where you tie up money trying to second guess the amount of scaling, last few months has shown its best to wait for the last day. I just got exactly what I want without the guesswork. And for less than the expected SPP (unless it drops a lot more today, in which case I might buy some more) incl brokerage...Lesson being it can be a more pleasant experience to keep options open to the last minute.

[mfd]

You say no brainer but with this annoying type of raise where you tie up money trying to second guess the amount of scaling, last few months has shown its best to wait for the last day. I just got exactly what I want without the guesswork. And for less than the expected SPP (unless it drops a lot more today, in which case I might buy some more) incl brokerage...Lesson being it can be a more pleasant experience to keep options open to the last minute.

You must have got a good price - based on this week's trading I expect the SPP to go through in the mid-high 4.60s.

I admit it's a little annoying having money tied up, I have a little cash sat out at the moment so it wasn't an issue for me. Only missing out on extremely minimal interest income. Does seem sensible to hold off till near the end just in case there's a 5% drop towards the end of the SPP pricing window.

Each to their own. Personally I place some value on my money actually going to the company. Reminds me I'm an owner rather than just trading a ticker code. I'm also not a high roller so brokerage is a real consideration for me.

[dibble]

You must have got a good price - based on this week's trading I expect the SPP to go through in the mid-high 4.60s.

I admit it's a little annoying having money tied up, I have a little cash sat out at the moment so it wasn't an issue for me. Only missing out on extremely minimal interest income. Does seem sensible to hold off till near the end just in case there's a 5% drop towards the end of the SPP pricing window.

Each to their own. Personally I place some value on my money actually going to the company. Reminds me I'm an owner rather than just trading a ticker code. I'm also not a high roller so brokerage is a real consideration for me.

I hear you. Also prefer the money to go to the Co. but as the retail chunk was (and usually is these days) so trivial Im sure they will do OK regardless. Looks like my route will probably work out a smidge more expensive after that low close but knowing the result up front makes me a happier punter.

[Blue Skies]

Thanks for those views on the SPP.
I may regret it but in the end let it go, just didn't seem a compelling reason either way with the current SP around the same level & with likely more market sentiment volatility ahead.
Best of luck for quick gains to those who took it up.

[mfd]

Just in case anyone forgot, as well as the current capital raise, IFT will be paid about 170m AUD by Tilt in a couple of week's time.

I wonder what they have in mind for the new half billion dollar war chest.

[macduffy]

Some would have you believe that they will buy SKT - several times over!

;)

[sb9]

Just in case anyone forgot, as well as the current capital raise, IFT will be paid about 170m AUD by Tilt in a couple of week's time.

I wonder what they have in mind for the new half billion dollar war chest.

I'm picking they'll announce some sort of opportunity in next couple of weeks once SPP and divvy money is all accounted into the kitty.

[ratkin]

Going to take over Sky TV many reckon

Hope not, but would have some possible synergies with vodafone

[BlackPeter]

.. and down she goes ...

While it is still early days - MA 200 is at $4.73. SP dropped last week under this line, tried to recover on Friday but didn't quite make it. Down again today.

Sure - just one TA signal, but ignore at your peril ... feels there might be anyway too many fees and hype baked into today's share price.

[mfd]

Looks like we get the SPP shares at 4.65, but likely to be scaled back pretty heavily as 2.6x oversubscribed.

https://www.nzx.com/announcements/355430

[kiora]

Looked like SP was manipulated down to get cheap shares ?

[RTM]

Looked like SP was manipulated down to get cheap shares ?

Lets hope it gets manipulated the other way as well.

[mfd]

Seems unlikely. Institutional raise of $250 m had already been completed. Don’t think retail shareholders could manipulate price down or materially benefit from it given $50,000 cap per shareholder and likely scaling. SPP only $50 m.

More likely that Institutions who bought up large in hope of quick gain decided to exit overweight positions without the profit they hoped for in my view.

Could have been done retail investors selling existing share and hoping to replenish then with cheaper SPP shares too. Risky with potential scaling though.

[ratkin]

Was a bit worried I had applied for more than I really wanted so not too unhappy about the scaling.

[Southern Lad]

Competing offers for Australian Renewables player Infigen Energy puts interesting perspective on Tilt’s valuation.

Also, what are the odds on IFT wading in with a competing offer with their half billion of cash as a down payment? Having said that, not exactly Morrison & Co.s modus operandi to publicly scrap over investment acquisitions rather than concluding a deal behind closed doors.

[freddagg]

That was disappointing, I only got 11% more shares in the capital raise.
Was anyone different to that?

[dreamcatcher]

That was disappointing, I only got 11% more shares in the capital raise.
Was anyone different to that?

Yes disappointing I received 18% in the CR

[newtrader]

That was disappointing, I only got 11% more shares in the capital raise.
Was anyone different to that?

Received ~11.5% more as well. Applied for the maximum amount.

A little disappointed with the scaling, is there information on the methodology?

[teabag]

Same here across 3 different applications for different amounts, 11.38% for all three.

[teabag]

Same here across 3 different applications for different amounts, 11.38% for all three. Didn't apply near the max for any of them. My guess you initially got the minimum of what you bid or 11.4%

[macduffy]

Same here across 3 different applications for different amounts, 11.38% for all three.

Oh, for the good old manual calculation days for such issues when one had a good chance of scoring with all three!

;)

[Chickens]

If it makes people feel any better, I applied for $30k, but only got $423 (91 shares)

i.e. 1.4% of application, and like other people, 11.4% of my holding. (801 shares)

.

[sb9]

If it makes people feel any better, I applied for $30k, but only got $423 (91 shares)

i.e. 1.4% of application, and like other people, 11.4% of my holding. (801 shares)

.

Oh my, that's some scaling.

[dreamcatcher]

Yes disappointing I received 18% in the CR

My bad appears I have the same as others 11.4% if calculated from record date

[Turboman]

That would make sense, IFT issued just over 10% more shares through the equity raising (around 60 million new shares and existing shares on issue was 660 million). To maintain your same % shareholding in the company following the raise you would expect to receive around 10% of your existing shareholding.

[mfd]

I'm on 11% too. The offer was pretty clear it would be scaled based on holdings so not too surprised - I optimistically put in enough to add 50% to my holdings but sounds like some of you were even more optimistic than me.

[ratkin]

Absolutely meaningless amount, am quite annoyed about this. What was the point of having this retail rating if they are not going to give people a sensible number of shares. Tied up 50k for weeks just for a few shares, pointless. Maybe that was their plan to skim off all the interest

[Bjauck]

...Tied up 50k for weeks just for a few shares, pointless. Maybe that was their plan to skim off all the interest
I much prefer a rights issue

[lissica]

Bit disappointed with the amount too.

I got 2992 shares, but luckily only applied at the last minute so didnt tie up 50k for too long. Hoping for a quick refund.

[Southern Lad]

Tied up 50k for weeks just for a few shares, pointless. Maybe that was their plan to skim off all the interest

In todays interest rate world, excess applications of $81m at 1% pa (if you were lucky for on call money) retained for a week would come to $15,577. This amount is petty cash compared to legal, share registry and NZX fees of undertaking the SPP.

[sb9]

Looks like SPP refunded money is finding its way back into buying on market

[Waiuta]

I applied for 765 and got the lot. Maybe because I'm an existing shareholder ~ 8000 and have some IFT290 bonds.
Lucky I guess.

[turnip]

I applied for 765 and got the lot. Maybe because I'm an existing shareholder ~ 8000 and have some IFT290 bonds.

I just used the SPP to reinvest my recent dividend, and got all I applied for too.

Only existing shareholders could apply for the SPP. Anyone who applied for just enough to avoid being diluted by the wholesale placement (about 10% of existing holding) would have got their full allocation, only those who applied for extras over and above their pro rata share would have been scaled.

[tango]

I applied for 765 and got the lot. Maybe because I'm an existing shareholder ~ 8000 and have some IFT290 bonds.
Lucky I guess.

congrats on getting in with 8000 shares. I bought them as a "maybe" and only have around half of that. I would have loved to have bought more when they were cheap. That's investing for you

[tango]

I much prefer a rights issue

Ditto! With an option to apply for extra if the issue is undersubscribed. Much more straight forward

[tango]

If it makes people feel any better, I applied for $30k, but only got $423 (91 shares)

i.e. 1.4% of application, and like other people, 11.4% of my holding. (801 shares)

.

I got 14.5% of my original shareholding. Maybe the scaling changes once you have more than 1000 shares (which I do). I have no idea...

[Waiuta]

My holding cost on these is now ~$3.40 having bought in Nov 2016 and again in Dec 2018. Despite me moaning about the excessive management fees Morrison & Co charge I'm showing a total return of ~25%. So mustn't grumble.

congrats on getting in with 8000 shares. I bought them as a "maybe" and only have around half of that. I would have loved to have bought more when they were cheap. That's investing for you

[kiora]

My holding cost on these is now ~$3.40 having bought in Nov 2016 and again in Dec 2018. Despite me moaning about the excessive management fees Morrison & Co charge I'm showing a total return of ~25%. So mustn't grumble.

Likely to be a lot lower return IF Morrison & Co weren't managing it???
This way all stakeholders win in my view.

[macduffy]

Likely to be a lot lower return IF Morrison & Co weren't managing it???
This way all stakeholders win in my view.

I agree, kiora. IFT is a Morrison and Co vehicle; it wouldn't be there if M and Co hadn't created it; despite "generous" management fees IFT has been an excellent investment since inception and investors go into it with their eyes wide open, or should. No complaints from me!

[Rowdy Flat]

Latest Telcowatch report, for the second quarter of 2020, Spark continue to lose ground in the NZ mobile market share (-2%) but Vodafone have slowed to .3% growth. Skinny made an 8% increase off a small base (all comparisons made are to the first quarter.) Vodafone still holding poll position with 36.4% market share, over Spark with 36.2%. The trend down for Spark continues (since early 2019) but these are not stellar numbers for Vodafone either - given the money they've thrown at the mobile market. Their reduced marketshare growth throughout the second quarter of 2020 must be of some concern for IFT.

[ratkin]

Latest Telcowatch report, for the second quarter of 2020, Spark continue to lose ground in the NZ mobile market share (-2%) but Vodafone have slowed to .3% growth. Skinny made an 8% increase off a small base (all comparisons made are to the first quarter.) Vodafone still holding poll position with 36.4% market share, over Spark with 36.2%. The trend down for Spark continues (since early 2019) but these are not stellar numbers for Vodafone either - given the money they've thrown at the mobile market. Their reduced marketshare growth throughout the second quarter of 2020 must be of some concern for IFT.

I think the key phrase here is Skinny having a small base, percentages fluctuate more off a low base.
Also the big Two would have had their retail outlets closed due to covid, and the pandemic in general not an ideal time for growth.

[bull....]

vodaphone , trustpower , wellington airport earnings all under pressure , i expect it will re rate significantly down when the market bubble pops

[MarineSalvage]

My 10yo son selected IFT as a place for half of his birthday money yesterday (other half was a huge nerf gun) I do like Sharesies as its got my kids interested in things financial

[Ggcc]

vodaphone , trustpower , wellington airport earnings all under pressure , i expect it will re rate significantly down when the market bubble pops
Lets hope that they go down in share price, so I can snap some up. What is your fair value?

[bull....]

Lets hope that they go down in share price, so I can snap some up. What is your fair value?

the 30% correction earlier in the year gave you ift for $3 as an indication , i have no fair value on stock due to uncertainty of covid

[Ggcc]

the 30% correction earlier in the year gave you ift for $3 as an indication , i have no fair value on stock due to uncertainty of covid
Fair comment. I did not invest at those levels as everything looked like a bargain. The only thing I did purchase was OCA at the low levels. If only we had a crystal ball with COVID

[bull....]

Fair comment. I did not invest at those levels as everything looked like a bargain. The only thing I did purchase was OCA at the low levels. If only we had a crystal ball with COVID

i didnt buy at the bottom either ,but i follow one of jessie livermore's saying in my strategy ... i never buy at what i think is the bottom and i always sell to soon

[kiora]

i didnt buy at the bottom either ,but i follow one of jessie livermore's saying in my strategy ... i never buy at what i think is the bottom and i always sell to soon

Shorting Mr B?
BB compressing.

[kiora]

Craigs report 22/7/20 12 month price target $5.46 PE 22.48
They report a neutral price target but their commentary to me reads more favorably than their normal reports on IFT?

[Southern Lad]

Singapore Airlines have announced they will not return to Wellington for the foreseeable future post COVID:

https://www.stuff.co.nz/business/industries/122763023/singapore-airlines-ditches-wellington-flights-for-foreseeable-future

Not good for IFT seeking to earn a buck on the substantial spend on infrastructure at WLG airport.

[RTM]

Singapore Airlines have announced they will not return to Wellington for the foreseeable future post COVID:

https://www.stuff.co.nz/business/industries/122763023/singapore-airlines-ditches-wellington-flights-for-foreseeable-future

Not good for IFT seeking to earn a buck on the substantial spend on infrastructure at WLG airport.

No...And Wellington Airport is a pretty sizeable chunk of Infratils invesment portfolio. ~11%.
Per the 2020 report they state that 85% of passengers are still flying domestically. I guess some of these people are tourists...so thats not the whole story, there will be a lot less tourists flying domestically. They have deferred as much CAPEX as they can, reduced costs etc etc. Going to have a pretty major effect thats for sure. Pleased they are not half way through extending the runway etc. And hoping that their Vodafone bet comes good.
Maybe they need to get on and marry it up with SKY ?
Disc. Recent holder.

[Rowdy Flat]

https://webcache.googleusercontent.com/search?q=cache:FkHS4UUmQrkJ:https://www.intelligentinvestor.com.au/recommendations/infratil-uncovered/148637+&cd=1&hl=en&ct=clnk&gl=au

Intelligent investor are hot for IFT. CDC especially spinning their wheels.

[RTM]

https://webcache.googleusercontent.com/search?q=cache:FkHS4UUmQrkJ:https://www.intelligentinvestor.com.au/recommendations/infratil-uncovered/148637+&cd=1&hl=en&ct=clnk&gl=au

Intelligent investor are hot for IFT. CDC especially spinning their wheels.

Thanks for posting the link. Hope they are right !

[bull....]

from the article

It's 26 years have generated returns of 16.6% per year, a return that trounces the market and most star fund managers.

ift great investment . i raved on this thread ages back that cdc and tilt were the best additions to growth in there portfolio and still are

[macduffy]

Yes, thanks, Rowdy. I've held IFT since the IPO - it's now my largest NZ holding. Good to see some Aussie coverage - and appreciation here!

[Bjauck]

Yes, thanks, Rowdy. I've held IFT since the IPO - it's now my largest NZ holding. Good to see some Aussie coverage - and appreciation here!Ditto from me. Despite several (regretted!) reductions it is one of my largest holdings. "Boring" looks increasingly exciting today!

[clown]

Does anyone have information about the share buy back program?

Disc: Bought a small holding recently :)

[Oakwood]

Thanks for the link, announcement of the CDC acquisition was the reason I first dipped into IFT

[kiora]

https://www.scoop.co.nz/stories/BU2009/S00465/vodafone-nz-upgrades-international-submarine-network-technology.htm?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Monday+28+S eptember+2020

[Ggcc]

I love watching this boring stock take off and no one says a thing. Go you little beauty!!!

[RupertBear]

I love watching this boring stock take off and no one says a thing. Go you little beauty!!!

any idea why it has taken off??

well apart from me selling out recently :rolleyes:

[Ogg]

any idea why it has taken off??

well apart from me selling out recently :rolleyes:

Big acquisition coming.

[Ggcc]

Big acquisition coming.
Maybe SKT lol

[Ogg]

Maybe SKT lol



https://www.youtube.com/watch?v=QGskWZCuCXI

[HITMAN]

Enjoying this stock, wish I held more... Not a lot of sellers atm.

[kiora]

Ditto,ditto,ditto pretty boring agh
Regular annual pattern or so on and on

[CraftyBeer]

Given a ~70c rise in TPW this month, does that have a positive spin for the IFT share price?

[kiora]

That took longer than I expected to pop

[Zaphod]

Big acquisition coming.

Or perhaps some additional Data Centres for Auckland.

[kiora]

Considerable organic growth to come.

[Greekwatchdog]

For Bars latest update for you.

Infratil's (IFT) mini investor day reiterated recent themes; CDC Data Centres (CDC) is IFT's growth engine and Vodafone has plenty of opportunity in front of it. CDC has been IFT's stand-out investment for the past three years and that has not changed, with growth expectations continuing to accelerate. A significant lift in our CDC valuation (up +NZ$1.54 to NZ$3.50) has been the key driver of the +NZ$1.33 increase in our target price to NZ$5.95. However, we retain our NEUTRAL rating as we have some concerns over how far data centre valuations have run.

[Jantar]

https://www.nzx.com/announcements/362022

Can someone explain to me hoe IFT buying 60% of Qscan for A$330 M gives it an EV of A$750 M. Surely that should be A$550 M for the whole company?

[Ogg]

https://www.nzx.com/announcements/362022

Can someone explain to me hoe IFT buying 60% of Qscan for A$330 M gives it an EV of A$750 M. Surely that should be A$550 M for the whole company?

Company has debt

[horus1]

This all about IT and data . good buy and has a consistent theme.

[peat]

re the Qscan acquisition
all the revenues come from MediCare
Australian govt hates NZ companies
It might change the rules ....
a real risk imho.

[kiora]

IFT are well versed in working with govt rules and govts and are knowledgeable at quantifying risk/rewards it would seem

[RTM]

IFT are well versed in working with govt rules and govts and are knowledgeable at quantifying risk/rewards it would seem

They might become an Australian company, they certainly have some solid investments there.

[Filthy]

Anyone else thinking that a Biden win will be really good for Longroad Energy?

[kiora]

Anyone else thinking that a Biden win will be really good for Longroad Energy?

There are tail winds for more than just Longroad and these surely not related to the election

[peat]

Proportionate ?? EBITDAF

[macduffy]

Proportionate ?? EBITDAF

Proportionate to IFT's holdings in the various associate companies, I guess. Just a new way of expressing results?

[kiora]

Changes in fair value adjustments :)
Must keep those accountants busy

[dibble]

Changes in fair value adjustments :)
Must keep those accountants busy

Not as much as having to keep up with ever imaginative adjectives for whatever the results get called.

[Ggcc]

Not as much as having to keep up with ever imaginative adjectives for whatever the results get called.
it can be quite interesting and maybe well above our intellect to understand everything, but as along as the share price keeps going up and the dividends keep pumping out and you understand the general gist of what they are talking about. Who cares.......... I want to buy more, but the price keeps going up

[Swala]

it can be quite interesting and maybe well above our intellect to understand everything, but as along as the share price keeps going up and the dividends keep pumping out and you understand the general gist of what they are talking about. Who cares.......... I want to buy more, but the price keeps going up
I have held Infratil shares for many years now and add when I can. IMHO they are the best company on the NZX for reliable dividends and steady growth.

[Ggcc]

I have held Infratil shares for many years now and add when I can. IMHO they are the best company on the NZX for reliable dividends and steady growth.
I totally agree. I have held since 2013

[kiora]

I like it the best when postometer at ATL & SP at ATH
So many sweet spots for this company
Way way overweight.
It appears to be brought up in mornings and sold off in afternoons. Some fund accumulating?
Oops don't jinx it now !

[macduffy]

I hope those "sweat spots" are really "sweet spots! I hold too.

:)

[kiora]

Ouch
My bad :)

[Swala]

I hope those "sweat spots" are really "sweet spots! I hold too.

:)Yes, let's leave it to other shares to provide the "sweat spots"! (I am also a long term happy holder).

[kiora]

Edited now.
That did look bad :)

[kiora]

I like it the best when postometer at ATL & SP at ATH
So many sweet spots for this company
Way way overweight.
It appears to be brought up in mornings and sold off in afternoons. Some fund accumulating?
Oops don't jinx it now !

"It appears to be brought up in mornings and sold off in afternoons"
And again today???
Is that a NZ fund or overseas fund nibbling or unloading??? Not high volumes though?

[kiora]

"It appears to be brought up in mornings and sold off in afternoons"
And again today???
Is that a NZ fund or overseas fund nibbling or unloading??? Not high volumes though?

Change in trend, brought up in morning and more brought more in the afternoon
Is this a rebalancing act?

[dreamcatcher]

Change in trend, brought up in morning and more brought more in the afternoon
Is this a rebalancing act?

Have to admit it's a very pleasant trend

[macduffy]

Presumably we're talking about IFT being bought up, not brought up, which would be a different thing entirely!

[Dusty]

Have noticed over the past six weeks volume and price increasing well above past movement and can't figure why.

Have held for a number of years as an old faithful so happy with the current trend.

[kiora]

Presumably we're talking about IFT being bought up, not brought up, which would be a different thing entirely!

Just observing SP movement during the day.
It has been on lower than average volume up until today

[kiora]

And then POP. Interesting?

Hope they do not sell out of TILT.
Multi decade pipeline. No price would be enough
Just need to look back at the early days of CDC to get the perspective of what it will be worth in decades to come

[Jaa]

Agree Kiora, the decision to sell Tilt seems strange considering the pipeline of new wind farm development opportunities they have built up. Not sure even double the current price can compensate for that?

[kiora]

If all cars convert to E vehicles electricity supply will need to double to keep up
Where will this electricity come from?
The only sensible solution is renewable energy?
Tilt well positioned
How could IFT replace this elongated pipeline?

[dibble]

Havent looked at the Tilt accounts but if a decent amount of value is bound up in intangibles then that is effectively what they might be flogging. Doesnt mean they cant remain in the sector via e.g. a different more capital efficient vehicle (and possibly build up another tranche of intangible value). Just one possibility.

[kiora]

From IFT website
"Tilt Renewables has 322 operating turbines across 8 wind farms in Australia and New Zealand, with a total installed capacity of 636MW and an additional 336MW under construction. Tilt Renewables also has a significant development pipeline of wind and solar projects, with approvals for more than 2,651MW of installed capacity.

Tilt's management team have extensive wind farm development and operational expertise."
Pipeline increasing MW to 5 x its installed capacity
636 to 3287 MW
Then what would Tilt be worth?
Plus loss of management team that have extensive wind farm development and operational expertise. What value would you put on this?

[kiora]

Around 100% (47-223% )1 year trailing return on these renewable energy companies
https://www.investopedia.com/investing/top-alternative-energy-companies/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral

One needs to be aware of changes in government regulations
https://www.fool.com/investing/2020/12/02/1-renewable-energy-stock-to-buy-and-1-to-avoid/

Around 10 % underlying profit /year on these figures for new owners operating it and 20%/year for Tilt if they kept their investment?
https://www.rnz.co.nz/news/business/404916/tilt-to-sell-south-australian-windfarm-will-pocket-au455m
Management team is the key to unlocking potential rewards

[Jantar]

If all cars convert to E vehicles electricity supply will need to double to keep up
Where will this electricity come from?.... If all cars, motorcycles and other light vehicles convert to electric that will require an additional 600 MW. I.e. it will exactly replace Tiwai. The issue is the amount that needs to be generated, it is the upgrade in the infrastructure to get that energy to where it is needed for charging.

[Jaa]

If all cars, motorcycles and other light vehicles convert to electric that will require an additional 600 MW. I.e. it will exactly replace Tiwai. The issue is the amount that needs to be generated, it is the upgrade in the infrastructure to get that energy to where it is needed for charging.

A one off cost for a long term competitive advantage. Huge benefit to NZ and our terms of trade if we can reduce our reliance on imported oil.

[Oliver Mander]

Something post-close...

AustralianSuper lobs in $5.73b bid for InfratilAustralianSuper has lobbed in a $5.73 billion cash and share offer to buy local infrastructure investor Infratil, the brainchild of the late Lloyd Morrison.
Australia’s biggest superannuation fund would leave Infratil’s stake in Trustpower with the existing shareholders, paying $5.79 in cash and distributing 0.2210 Trustpower shares per Infratil share.

[Greekwatchdog]

AustralianSuper makes $5 billion takeover play for Infratil
8 Dec, 2020 06:10 PM
3 minutes to read
Infratil owns half of Vodafone NZ. Photo / 123RF
Infratil owns half of Vodafone NZ. Photo / 123RF
NZ Herald
Australia's largest superannuation fund has made a takeover offer for New Zealand's Infratil at $7.43 a share, valuing the infrastructure investor that owns half of Vodafone NZ at $5.37 billion.


The offer from AustralianSuper works out at a $1.35 per share premium to Infratil's close on the NZX.


The proposal is a non-binding offer by way of a Scheme of Arrangement to acquire all shares in Infratil, with a component covering Infratil's majority holding in Trustpower.


The offer comprises:


• Cash Consideration of $5.79 per share; and
• 0.2210 of a Trustpower share per Infratil share (having a value of NZ$1.64 per Infratil share), which is proposed to be distributed in specie to Infratil shareholders as directly owned shares in Trustpower shortly prior to completing the scheme.


The offer represents a 28.1 per cent premium to Infratil's closing share price on Friday of $5.80.


AustralianSuper said it believed that the proposal, if implemented, would unlock significant value for Infratil shareholders and that it "seeks engagement" with the Infratil board in relation to the proposal.


Representatives of Infratil were not available for comment to the Herald at press time.
AustralianSuper's head of Infrastructure, Nik Kemp, said AustralianSuper, one of the world's largest infrastructure investors with a A$20 billion global portfolio, was attracted to Infratil's high quality portfolio of infrastructure assets in New Zealand and Australia.
"AustralianSuper currently has NZ$1.3 billion invested in New Zealand, reflecting our long-term confidence in this market.


"As a well capitalised and long term investor, we see significant potential to invest in the growth of Infratil's assets over the long term on behalf of AustralianSuper's members, which allows us to provide significant value to Infratil shareholders today," Kemp said in a statement.


"We believe our proposal, if implemented, would deliver an attractive premium for Infratil shareholders," Kemp said.


AustralianSuper will continue to seek engagement with the Board of Infratil to afford
Infratil shareholders the opportunity to assess our proposal in full," Kemp said.


Separately Infratil, which is managed by Morrison and Co, has its stake in NZX-listed Australasian wind farm company, Tilt Renewables, up for review. At today's prices, the Tilt stake is worth more than $1 billion.


Infratil's portfolio comprises a raft of prime New Zealand and Australian infrastructure assets.


It has a 51 per cent shareholding in Trustpower, which owns and operates 22 hydro power stations.


The company last year was part of consortium that bought Vodafone New Zealand for $3.4b.


Infratil's latest half year result showed strong contributions from Vodafone NZ and Canberra-based CDC Data Centres.


Proportionate earnings before interest, tax, depreciation and changes in financial instruments (before incentive fees) of $229.5m in the six months to September.


This was up on the $204.2m in the previous corresponding period.


The results for the period were impacted by portfolio changes including the acquisition of Vodafone NZ in 2019, and the sale of Perth Energy, NZ Bus, and the ANU Student Accommodation business in 2019, among others.


The company has forecasted proportionate ebitdaf for the full year to March 2021 of between $430m and $470m, including an estimated $80m reduction caused by Covid-19 related restrictions, compared with $446m the previous year.


Vodafone's first half ebitda came in at $224.7m, in line with analyst forecasts. Infratil has a 49.9 per cent stake in the telco after acquiring the business in tandem with Brookfield Asset Management in a deal worth $3.4 billion.

[Southern Lad]

This has put the cat among the pidgeon's!

Is this just an opening shot or are their pockets deeper? What value on IFT's assets in today's world where we have asset inflation fueled by falling interest rates? Are their other bidders out there? Is the NZ Super Fund a counter bidder?

AustralianSuper trying to scupper the TLT auction - if they are successful in acquiring IFT it would presumably be required to make an offer for the minority shares in TLT under the Takeovers Code. The commentators suggest there is global chase on clean energy assets - IFT is pretty well placed with TLT, Longroad and Galileo.

How does a IFT shareholder find replacement quality assets?

[Traderx]

Would a takeover mean the end of Morrison and co mgmt of infratil? Killing that fee stream would fairly value accretive for someone that just wanted passive exposure to this asset portfolio (ex TPW)

[Brain]

I have owned this share for 3 years and in that time it has doubled in price. I was looking forward to this company continuing to go from strength to strength. Australian super’s premium doesn’t impress me and I fear I will lose a high performing company from my portfolio for a short term gain.

[ScrappyO]

Completely agree Brain. The offer to me is Meh. I reckon the price of infratil would be another $1.35 in a year or 2 anyway.

[horus1]

I will sell somw and I have a lot. The sale price a has to be north of $10 or I hold the lot for good.

[Oliver Mander]

NZSA quote in the Herald:

@Oliver Mander, chief executive of the New Zealand Shareholders Association, said that if the proposal goes ahead, it would mean another unwelcome delisting from an already thin local market."Like other investors, we are surprised by the offer," Mander said.
"Infratil is attractive both as an infrastructure investment and its exposure to green energy - its holdings in both (US wind and solar power company) Longroad and Tilt.
"Both positions are sought after by investors either as a defensive position or to reflect the current growth in demand for green energy worldwide," Mander said.
"The offer at first glance seems to be complicated by the distribution of Trustpower shares and by Infratil's recently announced review of its holding in Tilt Energy," he said.

"That may mean that further information may be required by retail investors and other shareholders."

[turnip]

How does a IFT shareholder find replacement quality assets?

That is the issue from my point of view: nothing on the NZX would fill the hole left in my portfolio if IFT and TLT were taken over, so any proceeds would have to be reinvested offshore for sure.

[Felonius]

I have owned this share for 3 years and in that time it has doubled in price. I was looking forward to this company continuing to go from strength to strength. Australian super’s premium doesn’t impress me and I fear I will lose a high performing company from my portfolio for a short term gain.

Absolutely agree with you Brain.
I would be very sad to see this wonderful company delisted.

[Ggcc]

I want a better offer as that price will be hit within 3-4 years patiently waiting, or less. I feel $9-10 will start getting me interested

[kiora]

Absolutely agree with the sentiment here
ACC & Fisher funds nearly hold 10 % as far as I can ascertain
Hopefully any takeover will be dead in the water but don't expect this to be the only shot at IFT

Elongated pipeline of return for many years to come that is irreplaceable in my view.
Its not just about the assets its also the IP
They have been very good at looking after all stakeholders along the way
Starting buying these when they first listed in 1994? and have added to all along the way
Its mind boggling how a small amount back then has compounded to where it is now and long may it continue.

[Swala]

Yes, bit of a dilemma this one. On the one hand a 20-30% quick gain which is alway nice but then the problem (particularly in the current climate) is what would you invest the proceeds in? There is no other company remotely like it on the NZX with it's combination of healthy growth and Gentailer like dividends. The offer would have to be seriously raised to get my support. Represents a significant %age of my portfolio.

[Dusty]

Agree with what people are saying. No other company that you can throw a profit into.

IMO this may take the form of a hostile takeover if Aussie Super has the legs for it. I gather they would have reached out to the large holders like ACC already to get feedback but I get the feeling this will be the starting point of negotiations with them coming back with a higher offer.

Be a shame to loose this one as it's been good to me over the years.

[Southern Lad]

ACC keen for IFT to engage with AustralianSuper:

https://businessdesk.co.nz/article/infrastructure/acc-pushes-infratil-to-talk-with-australiansuper

[bull....]

the offer undervalues ift and i expect them to say this. the sum of the parts if separate entities is far higher than the value of the whole as currently valued by the market

[kiora]

If all cars, motorcycles and other light vehicles convert to electric that will require an additional 600 MW. I.e. it will exactly replace Tiwai. The issue is the amount that needs to be generated, it is the upgrade in the infrastructure to get that energy to where it is needed for charging.

Yes infrastructure is big issue in Australia & NZ from wind & solar power
Some serious long term planning is required
Long term does NZ really want/need to transfer power from Manapouri to Auckland with 50 % E loss if SI vehicles converted to E vehicles?

Long term might be better to generate more power closer to Auckland. Windpower,hydro, Geothermal ?

More public /private investment opportunities?

[Leftfield]

Crikey, be sad to lose this one to the ASX. Suggest we all go out and buy some IFT today.

[Ggcc]

What do people feel will be the opening price for IFT today?

[RTM]

the offer undervalues ift and i expect them to say this. the sum of the parts if separate entities is far higher than the value of the whole as currently valued by the market

I certainly would have been surprised if the offer over valued the company. Disappointed if this happens, especially at the modest premium. Recently bought in, June, and really had no intention of selling.

[Swala]

What do people feel will be the opening price for IFT today?
Aussie closed up 21% for the day yesterday. Guess we can expect similar or better here today.

[Bjauck]

Absolutely agree with you Brain.
I would be very sad to see this wonderful company delisted.

It is hardly surprising that yet another NZ company may delist and go to foreign investors. Government after government have kicked tax and investment reform down the street while Kiwis prioritise pouring more and more money into inflating the price of land. Will we end up in a land owned by wealthy land-owning gentry with the landless majority working for foreign companies controlled by absentee foreign CEOs?

Disc: IFT shareholder since the 90's when it floated.

[bull....]

It is hardly surprising that yet another NZ company may delist and go to foreign investors. Government after government have kicked tax and investment reform down the street while Kiwis prioritise pouring more and more money into inflating the price of land. Will we end up in a land owned by wealthy land-owning gentry with the landless majority working for foreign companies controlled by absentee foreign CEOs?

Disc: IFT was my first shareholding bought decades go.

exactly , nz the next fiji of the pacific?

[Leftfield]

IFT response today..... see here (https://www.nzx.com/announcements/364672)

Essentially IFT reject the Aus offer.

"The Board engaged expert legal (MinterEllisonRuddWatts) and financial advisors (Goldman Sachs) and formed a Committee of Independent Directors in October to assist in its assessment of the proposals. The Board reviewed valuation and the proposed structure and unanimously rejected both proposals as materially undervaluing IFT’s high quality and unique portfolio of assets on a control basis. The Board also notes material conditions related to Foreign Investment Review Board and Overseas Investment Office approvals in Australia and New Zealand and considers that there are other aspects of the proposal that are unattractive to IFT shareholders, including distributing Trustpower Limited shares without recognising a control premium and avoiding the need to make a takeover offer for that business."

[Bjauck]

exactly , nz the next fiji of the pacific? You hit the nail on the head! I remember listening to a speech by Maurice Williamson when he was a government minister. I got the impression that the aim was for NZ to have a high tech economy or to be "a Finland" in the South Pacific, with a high skilled highly productive workforce. Unfortunately the goal seems different these days.

[KJMLimited]

Probably a bit naughty for IFT to keep the approach a secret. In most investor minds it would be material information and therefore disclosable immediately. The fact is that the market doesn't believe what the Board is saying about IFT being undervalued, otherwise the share price would already have been near the bid price wouldn't it? That this was the situation rests with the Board, who have failed to recognise that shareholder value could have been enhanced by disclosure. I feel sorry for those who sold IFT shares between 18th Oct and yesterday - they have been done a disservice by the Board.

[ados_nz]

Having sold on the 23 Oct I agree!

In what circumstances does a company have to / not have to disclose an offer when it is made?

[bull....]

yep they should have disclosed an approach straight away. in aus a company usually discloses an approach with a warning nothing may happen

[Oliver Mander]

I do think the person wishing to sell ONE infratil share at $6050 might be a touch optimistic as to IFT's intrinsic value...

[Bjauck]

Since mid October, the IFT sp has risen 15% against about 2% for the NZX50.

[macduffy]

One doesn't sell the best performer in a portfolio. That's my position.

Disc: Held since IPO and added to occasionally.

[RGR367]

What will happen will come true for a reason I guess but this is one stock I really hate to be taken from me.

disc: holding/accumulating since 2015

[RTM]

Probably a bit naughty for IFT to keep the approach a secret. In most investor minds it would be material information and therefore disclosable immediately. The fact is that the market doesn't believe what the Board is saying about IFT being undervalued, otherwise the share price would already have been near the bid price wouldn't it? That this was the situation rests with the Board, who have failed to recognise that shareholder value could have been enhanced by disclosure. I feel sorry for those who sold IFT shares between 18th Oct and yesterday - they have been done a disservice by the Board.
"The Board confirms that it received an initial non-binding, incomplete, indicative and confidential offer from AustralianSuper to acquire IFT via a scheme of arrangement on 18 October 2020 for cash consideration of NZ$4.69 and an in-specie distribution of 0.2210 Trustpower Limited shares. "

They are saying it was confidential.

[KJMLimited]

"The Board confirms that it received an initial non-binding, incomplete, indicative and confidential offer from AustralianSuper to acquire IFT via a scheme of arrangement on 18 October 2020 for cash consideration of NZ$4.69 and an in-specie distribution of 0.2210 Trustpower Limited shares. "

They are saying it was confidential.
That's a good point, however my understanding is that disclosure is the primary obligation of the Board. One for the lawyers and NZX perhaps.

[Jantar]

…..
They are saying it was confidential. Yet the share price jumped up in mid October, and jumped again in the first two days of this week. Maybe it was only confidential to some people, while others were free to pass on the info.

The whole point of disclosure is to prevent insider trading.

[Ggcc]

Yet the share price jumped up in mid October, and jumped again in the first two days of this week. Maybe it was only confidential to some people, while others were free to pass on the info.

The whole point of disclosure is to prevent insider trading.

Insider trading happens whether we like it or not. Although if you get caught the penalties are huge

[longy]

What will happen will come true for a reason I guess but this is one stock I really hate to be taken from me.

disc: holding/accumulating since 2015

I think IFT would be around $9 to $10 per shares in about 4 to 5 years time. So I would think the offer be at least around $9.

[Bjauck]

Yet the share price jumped up in mid October, and jumped again in the first two days of this week. Maybe it was only confidential to some people, while others were free to pass on the info.

The whole point of disclosure is to prevent insider trading.
Yep.
During the period that it was "confidential" the IFT share price increased by 14.5%. The NZX50 increased by 2.3% during the same period.

[RTM]

Yet the share price jumped up in mid October, and jumped again in the first two days of this week. Maybe it was only confidential to some people, while others were free to pass on the info.

The whole point of disclosure is to prevent insider trading.

But there have been lots of jumps in various share prices for no apparent reason over the last 6 months as the market recovered. I didn't see a lot different with Infratil than some of the others.I also agree with Ggcc's comment:"Insider trading happens whether we like it or not. "

[Bjauck]

...I also agree with Ggcc's comment:"Insider trading happens whether we like it or not. "Which is why it beggars belief that any approach by a third party should be able to be kept "confidential". Third parties should realise that public companies are duty-bound to disclose every approach.

[Bjauck]

This offer seems like it would actually have been more than a fanciful "testing the waters" approach back in October.

Continuous disclosure rules in Australia

ASX Listing Rule 3.1 imposes an obligation on a listed entity to “immediately” notify the ASX when it becomes aware of any information concerning it which a reasonable person would expect to have material effect on the price or value of the entity’s securities.

[Ogg]

Someone wanting $6000 for a share. $3.5 trillion market cap, lol.