IFT - Infratil

[Traderx]

DB says NTA @ 2.50 ... SP @ 1.72 ... Yeild 3.6% ... IFT buying back its own ... Gotta love how the market thinks sometimes. ... :drool:

Quite clearly IFT is just too boring to invest in!

NTA nowhere near that level...

IFT is an interesting one

Has some great investments (Welly Airport, TPW and maybe Greenstone and maybe IEA).

It also has some poor ones - the rest.

It has quite a bit of debt

And it has a very expensive management contract to Morrison & Co. Which is why the value of the company doesn't get close to the value of the underlying assets.

Morrison and Co's fees in recent years have in now way justified the performance they have given (Greenstone and IEA investment may prove me wrong though).

IFT's wonderful long -term performance has been 90% driven by TPW's performance (which you could have had by just owning TPW and not incurring all the IFT expenses on top).

Best IFT investment currently is IFTHA which is yielding 8.5% and will deliver a very strong capital gain if the 1 year swap rate ever rises.

[mr.needs]

DB says NTA @ 2.50 ... SP @ 1.72 ... Yeild 3.6% ... IFT buying back its own ... Gotta love how the market thinks sometimes. ... :drool:

Quite clearly IFT is just too boring to invest in!

Would be interested to here a TA guru's perspective on IFT at present...

[peat]

Would be interested to here a TA guru's perspective on IFT at present...

I'm not a guru as shown by my last TA post in this thread where I identified a triangle that broke to the upside but failed to deliver

I've used a weekly candlestick chart since late 2007
We had the downtrend, which seems to have abated since the hammer candle and the 1.40 all time low in the week of 26th Feb 2009.
Now we have a triangle forming , a lengthy period of compression... which could potentially resolve either way.
These last three weeks are encouraging and theres a lot of support now at the 1.50-60 level but if there is an uptrend its still quite fresh and unproven. (But at least we dont have a down trend)
RSI is heading towards the 70 level but not overbought. Notice the RSI divergence at the end of the downtrend where price was still falling but RSI trend was rising
Verdict : Encouraging right now but unproven, and probably just a bore and tease (inefficient allocation of capital). But that said I'm happy to continue to hold as a stabilizing influence on my portfolio. Despite having smart modern finance techniques behind it (which adds risk imo) being involved in infrastucture is going to have a constraining and stabilizing effect kind of like a utility stock
My strategy before I add any more would be to let it break out and then buy on pullbacks towards current price. Absolute lowest stop for me would be a weekly close below 1.40.

In case the words in this picture are unclear heres a link to a better quality picture
http://img714.imageshack.us/img714/5404/iftweekly10092010.png

[peat]

increased volume on tuesday and today - both days over 2.5m

trend developing further definitely testing the upper compression zone.

[mr.needs]

increased volume on tuesday and today - both days over 2.5m

trend developing further definitely testing the upper compression zone.

Things are slowly ticking away with IFT. Interesting to see where things have come in the two weeks since your previous post peat. Are we seeing a breakout from the triangle formation?

Meanwhile, IFZ having somewhat lacklustre performance on the ASX!

[COLIN]

Am a happy holder. OBV and depth buy/sell ratio will probably be enough to impel me to add more.

[buns]

What has changed so much of late for a radical rating change? Have I missed something..

[ratkin]

Nothing , just better financial markets have made the squiggly lines point upwards.

[mr.needs]

Nothing , just better financial markets have made the squiggly lines point upwards.

Haha nicely put

[Phaedrus]

http://i602.photobucket.com/albums/tt102/PhaedrusPB/IFT926.gif

IFT remains in the trading range that it has been in for a long time. On Friday IFT closed at a previous resistance level, but a break above this should not generate excitement. A break above $1.85, though, would mean the end of the trading range and the end of a downtrend that has run for years.

Note the (unconfirmed) "buy" signal at the trendline break (green arrow). A reminder (just in case you needed one) that the break of a downward trendline does not necessarily mean the beginning of an uptrend or even the end of the downtrend.

The 3 plots at the top of the chart are commonly used volume indicators. What is interesting here is just how different they are. Right now the OBV is rising, the Williams' A/D is flat and the A/D is falling. Which one are we to believe? Given such a variation, the answer is none of them. Nevertheless with IFT over the past few years it is quite obvious that the Williams' version of the A/D oscillator has proved to be superior to the OBV that I generally use.

Personally, I am very happy to be out of IFT at the moment. There is no telling how long it will continue to crab sideways like this.

[COLIN]

http://i602.photobucket.com/albums/tt102/PhaedrusPB/IFT926.gif

IFT remains in the trading range that it has been in for a long time. On Friday IFT closed at a previous resistance level, but a break above this should not generate excitement. A break above $1.85, though, would mean the end of the trading range and the end of a downtrend that has run for years.

Note the (unconfirmed) "buy" signal at the trendline break (green arrow). A reminder (just in case you needed one) that the break of a downward trendline does not necessarily mean the beginning of an uptrend or even the end of the downtrend.

The 3 plots at the top of the chart are commonly used volume indicators. What is interesting here is just how different they are. Right now the OBV is rising, the Williams' A/D is flat and the A/D is falling. Which one are we to believe? Given such a variation, the answer is none of them. Nevertheless with IFT over the past few years it is quite obvious that the Williams' version of the A/D oscillator has proved to be superior to the OBV that I generally use.

Personally, I am very happy to be out of IFT at the moment. There is no telling how long it will continue to crab sideways like this.
Phaedrus: Thanks for the dash of cold water - ouch! So, the OBV does have its obvious limitations. I do look at the normal Accumulation/Distribution chart but only occasionally at Mr. Williams' version.
I shall just continue to hold, meantime. (Bought only recently).

[Phaedrus]

I can't think of a single indicator (or system!) that doesn't have obvious limitations, Colin.

[peat]

my question re Phaedrus's chart is that the trading range channel lines in blue only have 1 price intersection point therefore to me they arent really trendlines to be broken (perhaps they were'nt meant to be)

up more today...

I see that AMP declared their hand last week as the large purchaser , presumably them picking up another million this morning first thing.

[mr.needs]

my question re Phaedrus's chart is that the trading range channel lines in blue only have 1 price intersection point therefore to me they arent really trendlines to be broken (perhaps they were'nt meant to be)

I was wondering about that too. I thought it interesting that you had drawn sloping lines while P. had horizontal lines. Any significant reason for the difference? Or are both methods merely meant to be complimentary?

I wouldn't consider IFT to be a trading stock, but I certainly enjoy the perspective TA can provide.

[Phaedrus]

If we reduce the current IFT situation to its simplest possible construction, the importance and relevance of the blue horizontal lines is more apparent.
For the first 2 years of the chart, IFT was making a series of lower lows and lower highs in an obvious downtrend. (The red line is the "zig-zag" indicator which makes underlying patterns easier to see by ignoring market "noise" - small price changes of no significance.) Technically, a trend is deemed to be in existence until it is supplanted by the reverse trend. In this case, to end the "longterm" downtrend, IFT must begin an uptrend which requires it to make a Higher High after a Higher Low. We can see that for the first time in years it has made a Higher Low, but this is yet to be followed by a Higher High so technically, IFT is still in a Downtrend. To break the downtrend by starting a new uptrend IFT needs to break above $1.85. This crucial level is marked by the upper blue line. This is not a trendline and requires no confirmation

IFT has been crabbing sideways in a trading range for about 18 months, so far. A break above $1.85 will end the trading range, end the long downtrend, and would constitute a Buy signal. A break below $1.42 would re-confirm the existing longterm downtrend and would constitute a Sell signal for those that bought at the trendline break (green arrow). This critical level is marked by the lower blue line - again, this is not a trendline.

As IFT meanders along between these 2 crucial levels, all sorts of uptrends, downtrends, oscillator signals and patterns (such as the triangle noted by Peat) are being created. While these are of great interest to those attempting to trade IFT, they have no relevance for trend-followers.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/IFT929.gif

[gonzo56]

Article From ShareChat


Infratil's Greenstone Energy has made an encouraging start since it bought its 50% share in April, says First NZ Capital analyst Rob Bode.

Infratil and the Guardians of New Zealand Superannuation bought Greenstone, which owns petrol stations, 17.1% of the New Zealand Refining Company and 25% of Fly Buys, from Shell.

Bode has revised his assumptions for refining and retail margins which has boosted his estimate of Greenstone's contribution to earnings by about 20%.

Bode says the $210 million purchase price was "a very attractive price, being highly positive to cashflow, immediately earnings accretive and with significant potential for value to be added."

Initially, he had valued the Greenstone stake at $278 million but now values it at $312 million.

While this increase "may seem aggressive in such a short period, we note that on our revised estimates the purchase price represented (an enterprise value to 2011 operating earnings) multiple of just 4.1 times. We think Infratil picked up a bargain."

Bode says Infratil Energy Australia "probably offers the most potential within Infratil's portfolio for capital growth but delivery has not matched potential" and the business is not without its challenges. Any meaningful re-rating of Infratil shares "will probably hinge on convincing investors that value exists and growth is sustainable."
He values the shares at $2.39 and says they are trading at an excessive discount.

Recommendation: Outperform.

By Jenny Ruth

Monday 11th October 2010



Encouraging article, I'm waiting/hoping for a correction around the $1.60's before buying in.

[buns]

Fisher just topped up on IFT as well

[ratkin]

This is one NZ share that is long overdue for a rerating upards. Might not happen today or tomorrow , but it will happen

[mr.needs]

1.82 today ... The suspence is killing me. :)

Slowly ticking away....

[kiora]

And whack! Buyers rush to take out every seller at 1.83.

Slowly grinding up to $1.85 that Phaedrus mentioned a while back.You may get there yet belgarion

[mr.needs]

Slowly grinding up to $1.85 that Phaedrus mentioned a while back.You may get there yet belgarion

It's certainly not going anywhere in a hurry is it

[mr.needs]

After six months of the financial year the first half has been notably positive. The seamless transition of Greenstone Energy to local ownership is a credit to the management team assembled by Mike Bennetts. It also reflects well on Shell who spent 100 years building a successful New Zealand business. Infratil Energy Australia's transition into an integrated nationwide Australian energy company was covered by the September Update.

At a more business as usual level, the accord reached between the Wellington leaders group and Air New Zealand and Pacific Blue is positive for the Capital's airport as is the growth in domestic air capacity signalled by Air New Zealand and Jetstar. NZ Bus chalked up good patronage support, and progress is being made with the development of a new national public transport contracting regime. Snapper is now on Wellington ferries, buses, taxis and 230 shops. TrustPower is on track with its Mahinerangi wind farm and the Emissions Trading Scheme ("ETS") has been introduced in New Zealand (at no cost to TrustPower which is 100% renewable).

Looking forward to IFT's 6mth results on Nov 16th

[shambles]

Looks possible we may close above $1.85 breaking the trading range. Bullish signal leading up to the result announcement.. time to buy??

[Gonzo]

if you look at the different petrol stations where I live, Shell is always busy not so BP and Caltex, bit like KFC shops and you know what has happened to its share price. ? due to flybuys with Shell. I'm overwght IFT

[peat]

nice open
could be resistance at the 1.90 - 2.00 area but 2.30 here we come

[bull....]

Nice result should rerate upwards based on their profit upgrade.
Breakout in price was beginning off oct this occurred from a 14 mth odd bottom triangle pattern so aggressive buyers would have brought before breakout , less agressive at beginning oct.
The same applied if you were watching the trading range as P mentioned aggressive buy at bottom , less aggressive buy breakout now.
Triangle was within the trading range so you had multiple technical patterns to watch for your buying decision.

[COLIN]

Nice result should rerate upwards based on their profit upgrade.
Breakout in price was beginning off oct this occurred from a 14 mth odd bottom triangle pattern so aggressive buyers would have brought before breakout , less agressive at beginning oct.
The same applied if you were watching the trading range as P mentioned aggressive buy at bottom , less aggressive buy breakout now.
Triangle was within the trading range so you had multiple technical patterns to watch for your buying decision.

Yes, instructive looking back at our various musings around end Sept/early Oct.

[Traderx]

Just having a quick flick through the results you shareholders paid $16 million to Morrison & Co during the 6 months in question. Interesting how that is always buried very deeply in the results.

That is the biggest problem with IFT - all the ticket clipping that goes on at various stages.

That is a lot of "value" that Morrison & Co need to create.

But good luck to them :-)

IEA and Greenstones results are promising. TPW is mature now though and won't be the same growth engine that in the past drove IFTs wonderful history.

[COLIN]

TPW is mature now though and won't be the same growth engine that in the past drove IFTs wonderful history.

Maybe they will/should consider flicking their interest in TPW like they did with Port of Tauranga several years ago, on the grounds that it had reached maturity and IFT could suck no more added value out of it. However, their share of TPW (50%) is much greater than they had in POT (something like 30%?) and would be more difficult to achieve, although the Mum and Dad investors would probably lap it up - once more confidence has been restored to the market, if ever that eventuates!

[peat]

good webshow for the results presentation on their website


tax seems high this period (mainly due to prop depr disallowance)
with earnings 2.7 cps for 6 mths P/E is very high so any potential growth is priced in already to some extent.
results are quite seasonal so normalization needs to be factored in for future results

but seems well managed both financially as well as operationally with lots of successful projects coming through.

[CJ]

From what I can tell, they are paying ~NZ$500k each which seems expensive. I thought buses were less than $400k:


http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10699271
UK bus-maker targets NZ manufacturing base

3:00 PM Wednesday Jan 12, 2011
An Alexander Dennis Enviro200 bus. Photo / Wikimedia Commons, posted by user Arriva436
Infratil's NZ Bus has awarded its Auckland supply contract to British manufacturer Alexander Dennis, which says it will use the contract as a springboard into local manufacturing.

"Our aim is not simply to supply buses to New Zealand, but to become an active player in the county's manufacturing sector," said Alexander Dennis chief executive Colin Robertson in a statement.

NZ Bus will pay £25 million for 120 of Alexander Dennis's single-deck Enviro200 midi buses. That's the single-biggest investment since the Wellington-based infrastructure investment company acquired the public transport operator in 2005, and could lead to further deals in coming years.

The first of the 55-seat vehicles will arrive in time for the Rugby World Cup this year, with the remainder progressively introduced over the following 12 months.

"This is much more than just an important contract," said Robertson.

"It is the start of a significant business relationship that has the potential to see us deliver a further 200 to 300 buses into New Zealand in the next three to four years - and to use the location as a springboard into other territories, notably Australia,"

NZ Bus reviewed 38 options from nearly 30 manufacturers in New Zealand, Australia, China, Brazil and across Europe.

Alexander Dennis' Robertson said the manufacturer's buses will be shipped in parts to New Zealand, where Tauranga-based Kiwi Bus Builders will assemble the kit-sets.

NZ Bus representatives weren't available for comment.

Infratil shares were unchanged at $1.94 in trading today, and climbed 21 per cent last year.

[CJ]

Results out mid-may. Should be interesting as we'll see how the Shell aquisition is going. Current price action is a cause for concern however.They should also announce what they are doing with the Shell brand shortly. Costing $10m a year but creating a new brand isn't cheap and has lots of risk.

[karen1]

Not an announcement as such, but in today's news:

http://www.stuff.co.nz/business/industries/4922759/Neo-Kiwi-brand-fuels-change

[GTM 3442]

They should also announce what they are doing with the Shell brand shortly. Costing $10m a year but creating a new brand isn't cheap and has lots of risk.

Challenge - Fletcher Energy (remember them ?) managed it quite successfully with Challenge ?

Would be a boost for the local signwriting industry, that's for sure . . . .

[Joshuatree]

If they do choose to adopt a new brand they will have an op to create a strong iconic unique NZ one and hopefully not a lookalike (eg skytower). Visions of large bright paua design signs and or pounamu green, golden kauri colours / textures etc.Not some plain primary colour motif but something organically kiwi. My ulterior motive is for my warrants whiich i cleverly(not) switched from IFT shares at the top, get up passed the conversion price and back in the money ,sigh.

[sharer]

... My ulterior motive is for my warrants whiich i cleverly(not) switched from IFT shares at the top, get up passed the conversion price and back in the money ,sigh.

Yes, i sighed too some time ago & decided to just pay up & convert my IFTWBs, at least the shares give the dividend. Still sitting on the WCs (no pun intended) - their conversion price could keep them out of the money a decade+!
I'm still happy to hold a lot of IFT, but its amazing how the longterm holding builds up - for some time i've been looking for a chance to profitably trim it back a bit.

[Joshuatree]

Good to hear belgarion and WC's holding @.oo6c sharer:). New logo to replace shell looks good too and it is in golden KAURI GUM colours i like that.

[peat]

wow I missed the Z announcement til now.... is that a sign it didnt work too well?

[CJ]

Peat - or that you live in a cave? The Z launch was well covered in the news and with very long ads. Once the rebranding actually happens you should know about it.

There was debate about whether a brand that you have to tell people who to pronounce it is a good brand. But remember it is a very big company and will become common language in NZ. The 'kiwi' story will also make it do well.

[sharer]

Very encouraging financial results out in the paper today.
Hmm ... think i'll put them all back in the bottom drawer'

The energy businesses everywhere are doing well (again).
But still doubtful whether they can profitably run airports outside NZ.

[macduffy]

But still doubtful whether they can profitably run airports outside NZ.

True.
But as has been posted elsewhere, IFT's investment in overseas airports is a very small part of their portfolio. Doesn't detract from the overall very good result.

[CJ]

True.
But as has been posted elsewhere, IFT's investment in overseas airports is a very small part of their portfolio. Doesn't detract from the overall very good result.But it has to be a distraction. Given it is such small part, you wonder why they just dont liquidate. It will probably be a long time, if ever, for them to see a gain to warrent the long holding period.

If you go back far enough, Morrison and Co set up a separate company to invest in Australia and overseas (Utilico???) but it flopped. They have now figured out Australia but they should have stayed in this part of the world, not boosted their egos but operation in Europe as well.

[POSSUM THE CAT]

CJ do some research on Duncan Saville. with reference to UTILICO

[Beagle]

But it has to be a distraction. Given it is such small part, you wonder why they just dont liquidate. It will probably be a long time, if ever, for them to see a gain to warrent the long holding period.

If you go back far enough, Morrison and Co set up a separate company to invest in Australia and overseas (Utilico???) but it flopped. They have now figured out Australia but they should have stayed in this part of the world, not boosted their egos but operation in Europe as well.

Morrisons management fees are where the real money is being made, not Infratil. Energy assets are the only ones that have really shone recently, (like that's anything unusual compared to any other energy stock around the world). Just another top heavy investment company paying very high management costs and fees, my 2 cents.

[modandm]

Morrisons management fees are where the real money is being made, not Infratil. Energy assets are the only ones that have really shone recently, (like that's anything unusual compared to any other energy stock around the world). Just another top heavy investment company paying very high management costs and fees, my 2 cents.

totally agree - and thats why although im a shareholder now - i will be looking to exit when the shareprices rises further to better reflect the current good performance and value of the assets. The greenstone acquisition was good - and the sp should get above $2.10 in 12 months.

TBH - with such a large chunk of IFT being TPW - you can just buy TPW if you want the exposure. Personally I don't rate TPW as a good stock - with the listing of Meridian and MRP - CEN and TPW will be sold down imho

[modandm]

Morrisons management fees are where the real money is being made, not Infratil. Energy assets are the only ones that have really shone recently, (like that's anything unusual compared to any other energy stock around the world). Just another top heavy investment company paying very high management costs and fees, my 2 cents.

totally agree longterm but shortterm IFT is undervalued - and thats why although im a shareholder now - i will be looking to exit when the shareprices rises further to better reflect the current good performance and value of the assets. The greenstone acquisition was good - and the sp should get above $2.10 in 12 months.

Goldmans has a valuation of $3.10 and 12 month $2.30 and expects it will be 18-24 months before earnings highlight IFT value.

[Beagle]

totally agree longterm but shortterm IFT is undervalued - and thats why although im a shareholder now - i will be looking to exit when the shareprices rises further to better reflect the current good performance and value of the assets. The greenstone acquisition was good - and the sp should get above $2.10 in 12 months.

Goldmans has a valuation of $3.10 and 12 month $2.30 and expects it will be 18-24 months before earnings highlight IFT value.

Good luck with it. Analysts have theoretical valuations way north of where GPG are but in their case with hopelessly inept, and vastly overpaid "so called" management there's no chace of ever attaining theoretical value or anything even remotely close. Not saying IFT's structure is as absurd as GPG's but with each companies management structure within the portfolio, then Infratils management structure and then Morrison's extraordinary fees...well you get the picture, how could it ever be worth the theoretical sum of the parts ? Then as you quite rightly factor in yesterday's budget announcement and the market looking to absorb massive floats in the energy sector the value of Trustpower does indeed look under pressure going forward.
I am sure Goldman's have a very close investment banking relationship with Infratil, enough said.

[modandm]

I am sure Goldman's have a very close investment banking relationship with Infratil, enough said.

first nz - also $2.30
macq 0 $2.08 12m target 2.45 valuation
db - 12m target 241
ubs - 218 and estimate nav at 250

All research from may - source reuters.

I def think they deserve to trade at 15-20% discount to reflect fees and company structure so around 2.15 I see as fair value. Thats a good 10% upside from here.
A good yield too.

I mean its not going to shoot the lights out but for anyones core portfolio IFT warrants holding at this point.

You would be doing well to find better value after the recent strong performance of many on the NZX. Shares like SKC, SKT, FBU, NPX, all starting to look fairly valued IMHO.

[Beagle]

I think its a real pity they couldn't buy all of Shell's interests, a classic case of aggressive gearing limiting ones opportunites.
I prefer Ryman even at today's closing price.

[buns]

I'm going to dig into IFT a bit more next week as I have a hole in my portfolio for a company like this (stable/defensive yet growth aspirations, good income). I also like their capital structure, and willingness to take on debt/bonds and low rates (very certain CF's allow this).

I like the Shell deal, and think this could give them another leg up with investors. I'm unsure how greenstone is going to run this ship, however I think having local expertise, and low levels of red tape, hierarchies and ability to make decisions quickly compared to the other retail gas outlets should give them a sizeable advantage. Right away, they could secure some key outlets in Chch if they are smart about it. Hopefully sitting within IFT gives this business unit some sort of scale they would have had in the Shell Group.

And for those who get ticked off with the fee's, well IFT being a part of super/Morrison group allowed them access to the Shell assets right? There is no way IFT could have afforded these outright. There are some positives from this relationship.

Thoughts on how these privatised assets will affect IFT? I really have no idea about this, so would like some pointers from people in the know..

More infrastructure investing options mean less IFT investors? Can IFT itself take some ownership of some of these assets? Chances of these companies now being run in a certain way which could affect IFT’s operations/value?

[buns]

Well straight off the bat (my 15min looks at IFT) - I like this story.

Yes the Euro airports make a loss, but we all have one of them in our PF. Also it isn’t very material when looking at the big picture. About -$11m EBITDAF on $443m, and about $12m of capex on $475. The fee’s I haven’t looked at, but at this stage don’t think are an issue. I get the feeling they are just an annoyance to investors, but they mean very little in the big picture and only distract you from what are some strong financials. These fee's are not going away, and are paid depending on market cap, so investors in a way should be please to see the fees go up.

Normalised EBITDF up 22% to $443m, and guidance of a 7% uplift in FY12 to $475m (middle of range)

Capex/Investing from $475m down to $200m. And after removing the Shell acquisition it is still $65m down/good on FY11 or 14%. You could say that is just Wgtn airport being finished, but no, as this is more than offset by the upgrade to NZ bus in FY12.

Notional FCF (normalised for shell aq) of $178m in FY11 (-32m inc Shell), now $275m in FY12 – A 54% uplift in nFCF! Interest costs only rising $20m. With big investment in Wgtn airport, Shell, NZ Bus going into FY13 I doubt this earnings will deter off to much with capex only to fall (from logic)..

Bar another acquisition you will be getting another (probably larger) increase in dividend come FY12 and again in FY13.

Will look at the BS later in the week, and come up with a valuation.

[buns]

And an ASX listing in July I see.

Has this been timed with the turn around shown in the numbers above?

Maybe IFT have a similar FCF forecast to me, and are looking to sell this potential high yeild (years to come) story to Aussie insto's?

[peat]

good to see Morrison expanding his involvement at the equity level as opposed to creaming it only at the management level
http://www.reuters.com/article/2011/07/12/infratil-shares-idUSL3E7IC07U20110712

[modandm]

good to see Morrison expanding his involvement at the equity level as opposed to creaming it only at the management level
http://www.reuters.com/article/2011/07/12/infratil-shares-idUSL3E7IC07U20110712

agreed, however i think we can all agree the recent sp decline 190-180 has been disappointing and frustrating. Whats the yield now?

This is an investment for the more patient.

[mr.needs]

IFT have purchased over 6 mil of their own shares and over 200k perpetual bonds over the last couple of weeks. 1%+ dividend by stealth? Or just making sure they have enough shares in treasury stock to cover their divi reinvestment plan?

[winner69]

Sad news of Lloyds passing .... great guy and did heaps for NZ .... not just IFT

[QOH]

RIP Lloyd, very sad to read this news. What a great NZer he was.

[percy]

An outstanding New Zealander,a respected business leader.

[Stranger_Danger]

One of the good guys. Sad news.

[shasta]

Sad news of Lloyds passing .... great guy and did heaps for NZ .... not just IFT

I remember talking to him on lambton quay when he had the "change the NZ flag" campaign

Always found him likeable & approachable during the years where i owned Infratil shares, i spoke to him alot when Infratil were to put up $50m with Waitakere City Council to develop the Whenuapai airport (before Nanny State Labour interfered in the aviation industry to protect Air NZ)

The Wellington Phoenix will wear black arm bands in the weekend (Lloyd was part of the consortium to buy the Phoenix off Terry Serepisos).

Lloyd was also part of the buyout of Shell's downstream assets, (Infratil & NZ Super fund set up Greenstone Energy a 50/50 joint venture)

A generous man with both his time & resources

RIP Lloyd, one of a select few NZ business people i look up to & admire

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10784650

[Major von Tempsky]

Thought you guys would be discussing the effect of the passing of Lloyd Morrisson by now.
A brilliant investor and manager who was able to think laterally, outside the box, upside down and every which way.

A commercially penetrating brain who was able to find constructive ideas and large profits out of nowhere and who was probably paid rather less than Tony Marryatt.

Where can Ift find a replacement even half as good as him?

Oops, apologies Shasta, I see you beat me to it!

[Contrarian]

Gutted,

Presidential potential.

Go Phoenix, IFT, Morrison Family & a whole lot more that we don't know about & sadly never came to fruition.

[CJ]

He is a great loss to the country. A good business man, spoke up for things he beleive in (new flag), generous to his choosen charities. NZ needs more like him. I feel many business people dont speak up as their views may get mixed up with their companies. Since his company was His, this wasn't an issue.

[buns]

NZ needs more like him. I feel many business people dont speak up as their views may get mixed up with their companies. Since his company was His, this wasn't an issue.

That's very true, but unfortunately that kind of thing just dosent sit well with the majority of New Zealanders. Outspoken people, no matter if they are right or wrong get frowned at due to our conservative nature. It's that winning attitude we struggle with, instead just like to get a long and keep everyone happy. The attitude is quite different across the ditch and even more so in the states. We actually punish it, in laughing at people for it, calling them a "try hard".

It really is a horrible tendency we have, and if you look at any part of NZ society you will see a flavor of it. Keeping it topical, I suppose the high dividend/low reinvestment nature of our NZX companies is one example.

So Morrison was 'un common', something we should aim for. Being common or following the herd will eventually push your performance towards the mean, Morrison was uncommon and did very well. Munger has a bucket loads of great quotes and thoughts on the topic, one of my favorites is "I’m right, and you’re smart, and sooner or later you’ll see I’m right".

[CJ]

IFT is trading above 1.90, a level it hasn't broken through for the past 6 months. Given TPW is down, it seems a bit weird. Anything I have missed in teh news (I think they have agreed landing charges for Wellington Airport).

[peat]

Given TPW is down, it seems a bit weird.
Trustpower isnt down on my chart - I was just thinking its broken out of its triangle on the upside!

[Snow Leopard]

I notice that IFT closed at the $2 mark today. A closing price previous seen 14 months ago and last bettered on the 22-Oct-2009.

Depending upon your definition of an uptrend this has been slowly crawling up since either Apr-2009 or Aug-2011.

So maybe those $4.25 warrants will be in the money by 29-Jun (this year)! :lol:

best wishes
Paper Tiger

[Snow Leopard]

Very sad announcement (http://stocknessmonster.com/news-item?S=IFT&E=NZSE&N=223427) :crying:



IFT
30/05/2012 16:30
EXERCISE

REL: 1630 HRS Infratil Limited

EXERCISE: IFT: Infratil Warrants To Expire Unexercised

Free warrants issued by Infratil to shareholders in 2007 expire 29 June 2012.

Until their expiry the warrants entitle the holder to buy one Infratil share for each warrant held. The price at which the share may be purchased is$4.12.

Given that Infratil shares can be purchased at a substantial discount to the warrant exercise price, no exercise of the warrants is anticipated.

A copy of the warrant prospectus and other information about the warrants is available on http://www.infratil.com/content/view/1943/120/
(http://www.infratil.com/content/view/1943/120/End)End CA:00223427 For:IFT Type:EXERCISE Time:2012-05-30 16:30:57


in mourning
Paper Tiger

[peat]

share price would appear to have completed a 5 wave move upwards now.....
looking forward to the correction for a further buy opportunity

[macduffy]

Radio reports today speculate(?) that Snapper card will be red-carded from the Auckland transport scene. If so, it's not good news for its parent company. As the effective "live" date for integration of the systems was sometime in November, one can only assume that milestone stages havn't been achieved - but that's more speculation - on my part, this time.

Disc: Holding IFT.

[CJ]

Radio reports today speculate(?) that Snapper card will be red-carded from the Auckland transport scene. If so, it's not good news for its parent company. As the effective "live" date for integration of the systems was sometime in November, one can only assume that milestone stages havn't been achieved - but that's more speculation - on my part, this time.

Disc: Holding IFT.I can say with as much fact as anyone hiding behind an alis that Snapper will not be integrated into Auckland. Snapper made some mistakes (slowing things up) but AT made even more.

Very small part of IFT business.

Disc: Hold IFT.

[Zaphod]

That could spell the end for Snapper entirely as a transport payment mechanism, given the NZTA will use the Thales system as the backbone for a nationwide ticketing system. Operators or Councils (depending upon the contract model used) will be able to choose the equipment used on vehicles, but it must integrate with the Thales-based system.

[CJ]

That could spell the end for Snapper entirely as a transport payment mechanism, given the NZTA will use the Thales system as the backbone for a nationwide ticketing system. Operators or Councils (depending upon the contract model used) will be able to choose the equipment used on vehicles, but it must integrate with the Thales-based system.As far as expansion, I would agree though there is still the possibly that they could integrate into the Thales system down the line (I just dont see it happening on launch which will be fatal for Snapper re the Auckland network). As far as wellington, they will continue to operate on their fleet down there and as I say, depending on when they move to integrated ticketing, may be able to integrate. They must hold a resonable float and they are/have expanded it much wider than just buses - into taxis, shops, (is parking implemented??) etc.

[Zaphod]

As far as expansion, I would agree though there is still the possibly that they could integrate into the Thales system down the line (I just dont see it happening on launch which will be fatal for Snapper re the Auckland network). As far as wellington, they will continue to operate on their fleet down there and as I say, depending on when they move to integrated ticketing, may be able to integrate. They must hold a resonable float and they are/have expanded it much wider than just buses - into taxis, shops, (is parking implemented??) etc.

Remember that Snapper is set to lose access to a sizable portion of the float post Thales implementation, as HOP card top-ups will shortly reside with Auckland Transport, who will use the interest gained from this sizable investment - which I understand to be around the $10M mark at any given time in Auckland - to improve the public transport network.

Worse yet, the Thales based system is set to become the NZTA's national standard, with the long-term vision being one card that will work on any public transport service throughout the country. Of course a Government department's ability to deliver on that sort of vision is somewhat chequered, so whether this is achieved is another story.

We are also seeing an increasing number of banks and credit card companies establish their own off-transport payment systems (e.g. Visa Paywave), and given their already established userbase, could remove one of the last remaining advantages of the system. Why have a Snapper card when you can have a HOP card and a Visa/Mastercard?

[CJ]

Zaphod - I said there is a possibility they can hook into the Thales system if given enough time. They have to figure out whether they think they can or just kill this business quickly taking what extra money they can as it winds down.

[Zaphod]

Zaphod - I said there is a possibility they can hook into the Thales system if given enough time. They have to figure out whether they think they can or just kill this business quickly taking what extra money they can as it winds down.

Yes, I agree the possibility is still there and let's hope they don’t miss it, but I wonder whether given the lack of a float and competition from other payment providers in the off-transport space, there is still a business there even if they do hook into the Thales system?

[CJ]

Agree - Snapper is out of Auckland (just a matter of waiting for it to be offical really) so they should be thinking about winddown and milking what they have for as much as they can get on a skelaton staff/expenses.

[CJ]

Snappers out. AT finally announced: http://www.aucklandtransport.govt.nz/about-us/News/LatestNews/Pages/snapper-out-of-integrated-ticketing.aspx

AT stuffed this one up royally costing lots of people lots of money.

[CJ]

http://www.telegraph.co.uk/finance/newsbysector/transport/9560175/Rival-group-enters-battle-for-Stansted-airport.html

Telegraph suggests IFT, with the NZ Super fund is bidding for Stanstead. Hard to say if this would be good for IFT as it comes down to price. The airport is very busy but reliant on one airline.

I was more of a Heathrow person while I was in London - far too many issues with the cheap airlines to rely on using them for quick trips.

[ratkin]

http://www.telegraph.co.uk/finance/newsbysector/transport/9560175/Rival-group-enters-battle-for-Stansted-airport.html

Telegraph suggests IFT, with the NZ Super fund is bidding for Stanstead. Hard to say if this would be good for IFT as it comes down to price. The airport is very busy but reliant on one airline.

I was more of a Heathrow person while I was in London - far too many issues with the cheap airlines to rely on using them for quick trips.

How anyone could like Heathrow is beyond me. I fly to schipol , then take a flybe flight to Exeter , just so i can avoid going to Heathrow

[macduffy]

Rather surprising that Morrisons/IFT would be interested in another airport given their experiences with Prestwick and Manston. I suppose they know what they'e doing but then, I would have said that about P and M too!

[CJ]

How anyone could like Heathrow is beyond me. I fly to schipol , then take a flybe flight to Exeter , just so i can avoid going to HeathrowI never had the trouble people complained about (always travelled carry on only) and being a kiwi on OE, lived in teh SW of London so it was closest. Getting to Stanstead would take me longer than most flights. Ironcially, one of the only flights I did take from Stanstead ( a charter flight), all 200 of us had to exit the plane and identify our bags as they had packed one more than the manifest said.


Rather surprising that Morrisons/IFT would be interested in another airport given their experiences with Prestwick and Manston. I suppose they know what they'e doing but then, I would have said that about P and M too!They also own Wellington which is going ok.

[modandm]

wouldnt think stanstead would be a good buy. With ryanair the dominant player opportunity to ratcht fees as per wellington will not exist. I hope they know what they are doing on this one. Not a shareholder anymore anyway

[macduffy]

I see that Morrisons/Infratil are playing down their interest in Stansted - but then they would, I suppose!

I agree with modandm. Stansted isn't a quasi monopoly like Wellington airport - give or take the possibility of Paraparumu ever threatening its position - but more a regional airport heavily dependent on one particular airline. Not attractive therefore, IMO.

[macduffy]

Seems that IFT havn't given up interest in Stansted airport. Personally, I'd rather they concentrated on those "more convincing opportunities closer to home."

http://www.stuff.co.nz/business/industries/financial-results/7942036/Infratil-eyeing-next-UK-airport

[macduffy]

A recent snippet in the AFR speculated that Morrisons/Infratil were showing interest in EnviroWaste - NZ's second biggest waste management firm after Transpacific and whose assets include the Hampton Downs landfill. I can't find anything recent in NZ media but a NZ Herald article back in May raised the possibility of private equity owners Ironbridge Finance looking to sell either by trade sale or IPO.

Any thoughts out there?

[modandm]

1stly its Ironbridge Capital
a few thoughts come to mind:

1. IB must be looking for some realisations (haven't had many in fund II) so the firm Enviro could def be on the block

2. IB also own GRL and a few years ago lost the bidding for another big aussie waste co - idea to create a larger player and sell off

maybe they don't see more opportunities.

3. IB won't be selling cheap - it would be a fair price so unless IFT can access some more favourable debt at the parent level I feel it would be hard for the deal to add value for IFT shareholders.

[macduffy]

The Daily Telegraph reckons that Morrisons/Infratil have withdrawn from bidding for Stansted Airport after failing to obtain financial backing.

http://www.smh.com.au/business/world-business/australian-funds-battle-for-uk-airport-20130109-2cfwi.html

[ScrappyO]

Some nice gains lately. Rumour in the nz herald about Z float. Anybody else have any thoughts on this?

[POSSUM THE CAT]

Scrappy O if was any good why would they want to sell it (Z)

[CJ]

Scrappy O if was any good why would they want to sell it (Z)
You could argue they bought more as a Private Equity fund. Buy cheap off someone who wants to sell quickly, rebrand and increase sales, then sell. Look at the criticism at the time of purchase - petrol is a low margin/low growth business - which doesn't suit IFT investment ethos.

However, for those wanting a constant dividend stream greater than the bank rate (oldies and kiwisaver funds), then it is a good investment.

Partial float seems reasonable. Would the SuperFund also want to lock in some gains at the same time?

[peat]

I've always thought that Z fits really well into IFT's infrastructural sector position, and while it may be relatively low growth I still view it as having good potential for increasing market share based on the patriotic spend.
The new branding and service quality improvements are excellent from my personal experience.

[macduffy]

I'll be interested to see some market share numbers for Z in due course.

Being an IFT shareholder and a "sometime" FlyBuys cardholder, I bought my fuel at Shell/Z for many years until I discovered that AA membership offers 6c pl discount at BP with a minimum of fuss. So unless I happen to get the occasional more valuable coupon from Countdown, we buy the family fuel for 2 cars from BP. A pity, really, as the service from Z stations is usually superior, in my experience, but money talks!

[Romer]

I'll be interested to see some market share numbers for Z in due course.

Being an IFT shareholder and a "sometime" FlyBuys cardholder, I bought my fuel at Shell/Z for many years until I discovered that AA membership offers 6c pl discount at BP with a minimum of fuss. So unless I happen to get the occasional more valuable coupon from Countdown, we buy the family fuel for 2 cars from BP. A pity, really, as the service from Z stations is usually superior, in my experience, but money talks!


Hey. That's exactly what's happened to my fuel buying habits. - - And I wonder how many thousands more. I wonder what Z is doing to ensure it upholds, or increases market share!!!

[777]

In our area Z is 2c cheaper so ends up the same price as BP after the discount.

[Romer]

In our area Z is 2c cheaper so ends up the same price as BP after the discount.

Oh. I guess that makes good business sense, make your money in Auckland and don't worry about what's happening in the South Island :)

[777]

Actually today BP is 213.9/litre and Z is 207.9/litre.

[Snow Leopard]

I have just sold the last of my IFT shares, 1800 of which were the oldest shares I still owned in anything. I bought these way back in Jan 05 (http://www.sharetrader.co.nz/showthread.php?1360-Ift&p=37161&viewfull=1#post37161).

Now where to put the proceeds?

Still have some RYM :t_up: (current longest hold) and some NPT :t_down: from before the GFC.

Best wishes
Paper Tiger

[andysh]

Good read if anyone is wanting an update on what Infratil might be up to in the future: http://www.infratil.com/assets/Uploads/PDF/update_april2013.pdf

[kiwitrev]

Does anyone have any idea what sum IFT are likely to realise from the Z float? Currently their 090 bonds
are maturing 2020 at 8.5% coupon totalling $80m. The latest news released by IFT gives no clue of course
how the funds from the Z float would be utilised. It occurs to me one course they may consider is to retire
the 090 bonds and save a heap of interest payments. This is all conjecture and dependent on their capital
requirement for any projects they have targetted. They are currently trying to get a new issue June 2022
bonds off the ground a 8.5% to replace Sept. 2013 maturing(8.%% coupon) so apparently no problem in
going for new issues at lower rates. Makes sense to me. Any other views out there.

[CJ]

Reading the update linked at at post 1137, they want to expand, not pay down debt.

Not sure where the funds will go. Trustpower will be investing in windfarms in Australia and water in the SI but that money wont come directly from IFT.

Big section on Asian airports which is a bit scary considering their 'success' in Europe.

Also look for PPP in NZ and Australia such as transmission gully where they could be part of the build consortium and once completed, and the risk reduced, sell them off to pension funds and the like for a healthy capital gain.

[andysh]

I noted in the budget that they have announced "$80 million to support private irrigation projects". In the attachement I put in above it was noted that IFT (TPW) are wanting to do irrigation project down in the SI. Might be a bit of support of IFT. By no means I am saying I am correct - just trying to connect the dots. Also in the end it is not a huge amount for TPW - 3.4% of their market cap.

[Zeitgeist]

I had hoped that IFT was talking about freeing up some of the Z $$ to have a crack (ironic because they used to have a chunk) at Powerco. ComCom regulation seems pretty reasonable to me (if I were the owners), if a little predictable and therefore boring. Alas, it seems as though they are not interested.

I think any funds raised from a sell-down of Z will go to pay down some debt and contribute to TPW's windfarms (debt or equity??). Looks like TPW is doing the best it can to diversify from NZ only electricity, and for good reason what with the Labour-Green proposal lurking. e.g. getting into gas retailing (purchase of EDNZ) and generation development in Oz.

I'm excited to see how IFT does use the Z funds of course assuming a sell-down occurs. Hopefully it isn't used in some obscure European airport :p

[Billy Boy]

Could be they need some dosh for the NZR upgrade ??
BB

[CJ]

I noted in the budget that they have announced "$80 million to support private irrigation projects".. Agree. Expect to see joint investments here. They are expensive projects and farmers can't fund upfront but will come inboard once running. IFT will earn the risk premium on these investments


I had hoped that IFT was talking about freeing up some of the Z $$ to have a crack (ironic because they used to have a chunk) at Powerco. not enough money/growth in an established company. IFT wants to earn the risk premium from building an invt business. Not owning existing ones.

I'd also look for them to partially list NZBus in a few years time once the new Auckland PTOM contracts are allocated.

[shambles]

Been a while since any comments on this thread. In the meantime IFT looks to be settling into a down trend, perhaps to be strengthened if MRP replaces it in the NZX10 and triggers some institutional selling? Any thoughts?

[Mista_Trix]

Been a while since any comments on this thread. In the meantime IFT looks to be settling into a down trend, perhaps to be strengthened if MRP replaces it in the NZX10 and triggers some institutional selling? Any thoughts?

Yeah if anyone's got any thought I'd be interested to hear also...

[CJ]

Been a while since any comments on this thread. In the meantime IFT looks to be settling into a down trend, perhaps to be strengthened if MRP replaces it in the NZX10 and triggers some institutional selling? Any thoughts?Seems to have closely tracked CEN so I think it is just the effect of the L/G announcement has had on Trustpower. Flow on of regulation on Wellington Airport as well.

It will rebound.

[joey]

I have been watching this share for a while now. In the last couple of months it has seemed to be heading down. However
in the last few days it has jumped through the 20 day and 120 day moving averages I that I particularly watch on my charts.
It also got a very good report from Forsyth Barr back in May.

To me it has become a buy.

joey

[CJ]

I have been watching this share for a while now. In the last couple of months it has seemed to be heading down. However
in the last few days it has jumped through the 20 day and 120 day moving averages I that I particularly watch on my charts.
It also got a very good report from Forsyth Barr back in May.

To me it has become a buy.

joeyIt was impacted by the Greens power policy given its leveraged investment in Trustpower. That threat is as big a risk as Shearer winning the next election.

[Leftfield]

I have been watching this share for a while now. In the last couple of months it has seemed to be heading down. However
in the last few days it has jumped through the 20 day and 120 day moving averages I that I particularly watch on my charts.
It also got a very good report from Forsyth Barr back in May.

To me it has become a buy.

joey


Perhaps also anticipation of the Z energy float/sell-off?

[noodles]

Perhaps also anticipation of the Z energy float/sell-off?
I wonder if IFT shareholders will get a priority allocation?

[andysh]

Some good volume going through today, wonder why? At least it is going in the correct direction.

Disc: Hold.

[andysh]

http://www.nbr.co.nz/article/infratils-plans-z-proceeds-debt-reduction-buyback-aussie-windfarms-bd-145607 (http://www.nbr.co.nz/article/infratils-plans-z-proceeds-debt-reduction-buyback-aussie-windfarms-bd-145607)

Info on what Infratil might look to do with the proceeds from Z

[andysh]

Infratil have released a study on the central buying of electricity:

http://www.infratil.com/assets/Uploads/PDF/updateseptember2013.pdf?utm_medium=email&utm_campaign=September+Newsletter&utm_content=September+Newsletter+CID_ab9289e73f30b e97eb390c4757e29431&utm_source=Campaign%20Monitor&utm_term=Update

[kiwitrev]

Ift share buyback ann. today 24m shares at max. price $2.60 starting October. SP reaction today plus 9c

[andysh]

Always a nice bonus, can you tell that I hold?

[macduffy]

It's also, of course, an implicit admission that the capital can't be spent in an alternative way. A good discipline against empire-building but as moosie suggests, not all companies have that discipline. Now, if only IFT could get rid of those pesky European airports!

[macduffy]

First NZ Capital likes Infratil!

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11136211

[macduffy]

I had a bit of spare time this morning so went back and re-read IFT's market update of 27 September. It's not often that a company updates its shareholders - and the market - to the extent that Infratil has in this document. Well worth the read - particularly the estimate of net asset value of $3.08 - $3.69.

http://www.infratil.com/assets/Uploads/PDF/Infratil-Market-Update.pdf

If Infratil wasn't already one of my biggest NZ holdings I'd be selling something to buy some more at current SP.

[RRR]

I do like IFT, missed it all the way from $1.70! But companies like IFT (holding companies - although IFT also operates what it owns I think) will almost always trade at a discount to NAV. It is IFT's estimate NAV any way - what if they have tax to pay if they sell an investment?

[andysh]

The Infratil 'Group' is not a holding company though, the companies to which Infratil don't control at their 2012 Annual report are Z energy (through Aotea Energy Limited), Mana Coach Holdings (2mil), and 10.4mil as held for sale which I believe is the UK airports. So all the rest of the companies which the parent owns, the parent controls.

I do agree though, there is going to be some overhang, but I would have thought not a massive amount.

I originally got into Infratil at 2.72 just before the GFC, but then over doubled my holding at 1.76 so still reasonably happy.

[Zeitgeist]

Hot off the press:http://www.heraldscotland.com/news/transport/prestwick-airport-taken-into-public-ownership.1381239503

No mention of $$ at this point. Bogoievsky: "[Infratil] will work proactively with the Scottish Government over the next six weeks towards achieving completion of a transaction."

Fingers crossed for a loosening of the Scottish Government's purse strings. I'm no accountant but it looks like Infratil valued its two European airports at $21.2 in its most recent annual report so anything greater than $10.6m would be a nice addition to the upcoming half yearly (this totally ignores the respective value of each of the two airports which I know nothing about).

Can't really call it good news as the sale will represent the end of a poor investment but nice to have cut the loss.

[CJ]

The Infratil 'Group' is not a holding company though, the companies to which Infratil don't control at their 2012 Annual report are Z energy (through Aotea Energy Limited), Mana Coach Holdings (2mil), and 10.4mil as held for sale which I believe is the UK airports. So all the rest of the companies which the parent owns, the parent controls.
.Trustpower is only partly owned (can't remember%) and Wellington airport is only 66% owned so technically have control but the council can probably exert a bit of control due to the nature of the asset.

[macduffy]

Hot off the press:http://www.heraldscotland.com/news/transport/prestwick-airport-taken-into-public-ownership.1381239503

No mention of $$ at this point. Bogoievsky: "[Infratil] will work proactively with the Scottish Government over the next six weeks towards achieving completion of a transaction."

Fingers crossed for a loosening of the Scottish Government's purse strings. I'm no accountant but it looks like Infratil valued its two European airports at $21.2 in its most recent annual report so anything greater than $10.6m would be a nice addition to the upcoming half yearly (this totally ignores the respective value of each of the two airports which I know nothing about).

Can't really call it good news as the sale will represent the end of a poor investment but nice to have cut the loss.

Thanks, Z!

I call that good news!

CJ, a couple of years' ago, IFT owned 50.6% of Trustpower - their biggest investment. I havn't seen any revision to that number but don't doubt that IFT still have the biggest say there.

[CJ]

CJ, a couple of years' ago, IFT owned 50.6% of Trustpower - their biggest investment. I havn't seen any revision to that number but don't doubt that IFT still have the biggest say there.Close - 50.42% with TECT holding another 32.9%. So technically they do have control but it still has full management team so IFT is a second layer of managment.

Compare that to the likes of NZ Bus which has its own management team but I assume they dont overlap with the staff at IFT.

Re Overseas Airports - even selling them at Book value would be a great deal as the savings in management time alone would drive benefits. NZFC has written them off in its valuation: http://www.nbr.co.nz/article/infratil-stock-undervalued-after-z-selldown-wellington-airport-worth-more-broker-says-bd-146

[macduffy]

Comment on the proposed sale of Prestwick.

http://www.stuff.co.nz/business/industries/9264120/Airport-sale-no-cash-cow-for-Infratil

[Mista_Trix]

Sad news :(

"Infratil advises with great sadness that Infratil’s Chairman David Newman passed away this afternoon in Wellington"
https://www.nzx.com/companies/IFT/announcements/242338

[Dentie]

Sad news :(

"Infratil advises with great sadness that Infratil’s Chairman David Newman passed away this afternoon in Wellington"
https://www.nzx.com/companies/IFT/announcements/242338

Very Sad ..... hopefully not a catalyst though ... Today is our very first foray into these shares .....

[QOH]

RIP David, very sorry to read this, another from Infratil gone way too soon

[psychic]

15 October 2013


Infratil agrees to sell Manston Airport

Infratil Limited has agreed to sell Manston Airport to Lothian Shelf (710) Limited, an entity
wholly owned by Ann Gloag, for cash consideration of £1 plus an adjustment for working capital
variances and cash injected by Infratil between 14 October 2013 and transaction completion
(which is expected to be around GBP350,000). Ann Gloag is an experienced investor who
co-founded Stagecoach Group, the UK-listed public transport operator, along with her brother,
Brian Souter.

“Infratil Limited is very pleased to have found an acquiror with a vision for Manston Airport’s
future development.” said Marko Bogoievski, Chief Executive of Infratil. “From Infratil’s
perspective, while Manston was a very small part of the company’s overall asset base, this sale
will result in a more focused portfolio and improve our future cash flow position.”

[peat]

another from Infratil gone
yeh that's two now.
something in the water ?

[QOH]

yeh that's two now.
something in the water ?
Nearly three, Tim Brown is very lucky to be alive.

[andysh]

Chalkie on Wellington Airport Extension:

http://www.stuff.co.nz/business/opinion-analysis/9287053/Flight-of-fancy-or-citys-saviour

[CJ]

Chalkie on Wellington Airport Extension:

http://www.stuff.co.nz/business/opinion-analysis/9287053/Flight-of-fancy-or-citys-saviourI think it all comes down to regulated returns - if they invest $350m, they can put up their landing charges on all flights as they are allowed a set return from any capital investment. Completely unnecessary in my view.

[macduffy]

Yes, it's hard to see how Wellington Airport could attract an airline to contribute to the cost to enable it to fly to an Asian port, given the disparate destinations involved and the relatively small numbers of local passengers wanting to travel to each of them. Not much point in flying from Wellington to Singapore or Hong Kong for example if your destination is Shanghai, Beijing or Manila and there's a direct flight from Auckland or Sydney. A bit of realism from "Chalkie" - Pattrick Smellie - on this occasion.

[FarmerHamilton]

Yes, it's hard to see how Wellington Airport could attract an airline to contribute to the cost to enable it to fly to an Asian port, given the disparate destinations involved and the relatively small numbers of local passengers wanting to travel to each of them. Not much point in flying from Wellington to Singapore or Hong Kong for example if your destination is Shanghai, Beijing or Manila and there's a direct flight from Auckland or Sydney. A bit of realism from "Chalkie" - Pattrick Smellie - on this occasion.

Agree , this is crazy stuff. It would be cheaper to fly from Auckland , and a 45min flight up the North Island is nothing , most people in the world leave home hours and hours before their flights depart with horrendous traffic and 3hr check-ins. Air NZ tried a CHC-LAX run for a while but it just didn't work.

[CJ]

Might of worked 10+ years ago when lots of Multinationals were based down there but they are all in Auckland now. As Key said, it is dying. Hub and Spoke are the way eilines go and for that Auckland is all NZ needs.

[Mista_Trix]

Might of worked 10+ years ago when lots of Multinationals were based down there but they are all in Auckland now. As Key said, it is dying. Hub and Spoke are the way eilines go and for that Auckland is all NZ needs.

While I agree all the large multiantionals are up there, there's definitely a growing number of the 'think different' businesses in Wellington - TradeMe and Zero etc come to mind.

DISC: Wellingtonian, we're not dead yet!!

[macduffy]

You're right there, Mista Trix.

The point though is that it's much easier to make the connecting flight in NZ than to face that in one of the big Asian hubs. The Wellington Region isn't going to be able to support multiple destinations, however wide Fran Wilde and her supporters would like to extend "Greater Wellington."

[CJ]

DISC: Wellingtonian, we're not dead yet!!Just went fishing and caught myself a Mista_Trix hook line and sinker ;)

Agree with your point but the mix has changed from the big head offices to more technology focuses. I would add Peter Jacksons studios into the mix as well as a big employer.

[andysh]

I agree the extension is not needed, soon (I hope) it will be easy to fly to Australia, just like a domestic flight and then you will have almost four main hubs (AKL,SYD,MLB,BNE). No needed and I'm glad that IFT is saying "we're not going to take the risk".

[psychic]

Oh, ok. So the buyback has been deferred. Does this suggest we have found something better to do with the cash?

[andysh]

That's what I am thinking. Said they will release details on the 2nd

[psychic]

Dreaming : Perhaps they poked the cash into Xero instead? :)

[kiora]

To be value accretive over $2.60 ?

[CJ]

Oh, ok. So the buyback has been deferred. Does this suggest we have found something better to do with the cash?they are looking into a number of things apparently - no idea what.

Irrigation scheme, hawaki cable, MET? As long as it isn't another Euro airport!

[Zeitgeist]

From the perspective of IFT, that goes without saying. $2.60 is a minimum pps in its eyes so by delaying a buy back for "potential transactions", IFT would be implying it has a better use for capital than could be achieved buying itself at $2.60. At least for the amount previously earmarked for the buybacks which was a small part of the ZEL proceeds.

I've heard rumours about IFT looking at a chunk of the recent MET and/or SUM selldowns. They certainly have the cash for it but it doesn't feel right to me. I'm not sure about MET but Quadrant's stake in SUM was circa 30% which doesn't seem large enough for IFT to get excited given the usual model of IFT/HRL staff moving in to the corner offices. How much did MET's parent sell? Happy to be proven wrong as retirement is a key sector to be in.

I've got a feeling this will be related to the greenfield references signalled several times previously by IFT. Maybe a new Oz wind project (I believe Snowton I and II have*been "paid for" by IFT/TPW). IFT is interested in at least two NZ irrigation projects but having not seen any numbers I fail to see how these projects could be worth hundreds of millions both from a cost and shareholder perspective. So there may still be capital remaining from 1/2 irrigation projects...my money is on a big PPP energy project in Oz

[psychic]

Infratil Commits to Buy a 19.9% Interest in Metlifecare Ltd
8:35am, 25 Oct 2013 | ASSET
Infratil advises that it has entered into a conditional sub-underwriting agreement with Goldman Sachs New Zealand Limited to acquire a 19.9% interest in Metlifecare Limited
for consideration of NZ$147.9m (NZ$3.53 per share)

[Dentie]

Infratil Commits to Buy a 19.9% Interest in Metlifecare Ltd
8:35am, 25 Oct 2013 | ASSET
Infratil advises that it has entered into a conditional sub-underwriting agreement with Goldman Sachs New Zealand Limited to acquire a 19.9% interest in Metlifecare Limited
for consideration of NZ$147.9m (NZ$3.53 per share)

Great - I expect a lift today and current depth seems starting to back this view.

[CJ]

Infratil Commits to Buy a 19.9% Interest in Metlifecare Ltd
8:35am, 25 Oct 2013 | ASSET
Infratil advises that it has entered into a conditional sub-underwriting agreement with Goldman Sachs New Zealand Limited to acquire a 19.9% interest in Metlifecare Limited
for consideration of NZ$147.9m (NZ$3.53 per share)They bought it with the Superfund so each have a 19.9% holding now. Looks like they are joined at the hip.

[swillisam]

Apparently NZ Super Fund's share is only 17%. NZ Super Fund has no reason not to stick with Infratil / Morrisson and Co after the success of Z.

"Its Metlifecare stake cost it $147.9 million, and the NZ Super Fund bought its latest 17 percent for $126 million, with both purchases were at $3.53 a share."

http://www.sharechat.co.nz/article/828007c1/infratil-nz-super-fund-nab-nearly-40-percent-of-metlifecare.html

[psychic]

Well I guess the partnership worked with Z..
Kinda feels a bit queer holding both MET and IFT now

[CJ]

Apparently NZ Super Fund's share is only 17%. NZ Super Fund has no reason not to stick with Infratil / Morrisson and Co after the success of Z.But they already owned a bit so they are both at 19.9%.

[CJ]

Well I guess the partnership worked with Z..
Kinda feels a bit queer holding both MET and IFT nowDisc: Hold IFT, TPW, ZEL, MET.

They own WEL, I own AIA
They own TPW, I own that as well as other power co's.
They own a NZBus, I indirectly have an interest in a bus company.
Do they own anything else?

If its good for them, it is good for me.

[psychic]

Thanks CJ
You happy , me happy

[swillisam]

Disc: Hold IFT, TPW, ZEL, MET.

They own WEL, I own AIA
They own TPW, I own that as well as other power co's.
They own a NZBus, I indirectly have an interest in a bus company.
Do they own anything else?

If its good for them, it is good for me.

Infratil have LUMO their Australian energy business and Snapper etc.

[psychic]

trading halted?

[CJ]

SnapperSnapper is a dead dog. Its just a ticketing system which any bus company needs to have. If they managed to get the AT contract, it would have been great but that when to Thales at significant expense to the ratepayer.

[kiora]

Plus Plus

ASSET: IFT: Infratil commits to Australian PPP projects

Infratil today announced an intention to commit A$100 million to pursue
greenfield availability based public-private partnership ("PPP")
opportunities in Australia via the Australia Social Infrastructure Partners
("ASIP") platform. The ASIP platform consists of two vehicles managed by
H.R.L. Morrison & Co.; Leighton Contractors Infrastructure Partners and
Public Infrastructure Partners Australia, established in 2012. ASIP has
currently invested in 9.95% and 49.9% respectively of the equity in the
A$1.85billion New Royal Adelaide Hospital PPP and the A$232m South East
Queensland Schools PPP.

Infratil Chief Executive, Marko Bogoievski commented that, "Infratil has been
assessing the Australian PPP market for some time, and in particular the best
access point to pursue the significant pipeline of development opportunities
that exists across the education, health and transport sectors. Infratil has
observed that greenfield PPP investments offer risk-adjusted development
returns that are comparable to the returns available in adjacent
infrastructure sectors such as greenfield Australian wind projects."

The commitment establishes a new strategic alliance between Infratil and
Leighton Contractors. Leighton Contractors, a wholly-owned subsidiary of
Leighton Holdings Limited, is one of Australia's leading contracting and
project development groups, with over $13 billion work in hand and employing
more than 14,000 people across Australia, New Zealand, Papua New Guinea and
Africa. The company delivers projects for clients across the infrastructure,
mining, telecommunications, civil construction, industrial, energy, health
and services sectors.

Under the alliance arrangements between H.R.L. Morrison & Co and Leighton
Contractors, Infratil and other institutional investors have the opportunity
to participate as equity investors in future Leighton Contractors' PPP
projects via the Leighton Contractors Infrastructure Partners vehicle. The
terms of the strategic alliance allow for additional co-investment by
Infratil in Leighton Contractors' PPP projects and also provides the
flexibility to pursue greenfield projects where Leighton Contractors is not
involved.

Leighton Contractors is currently participating in bids for the Queensland
Schools, North-West Rail (NSW) and East-West Link (Vic) availability-based
PPP projects, and is well placed to succeed in bids for A$30bn of PPP
projects to be procured by state and federal governments in the near to
medium term.

Infratil's commitment in the strategic alliance is to be formalised before
year end, with Infratil's capital commitment likely to be called over a 2-3
year period as bids are awarded.

Marko Bogoievski
Chief Executive Officer
End CA:00242880 For:IFT Type:ASSET Time:2013-10-25 10:04:09

[macduffy]

Yes, two good news stories within 24 hours. To put it into context though, they are relatively small investments compared to others such as Trustpower - over a billion dollars - Z Energy and Wellington Airport.

[andysh]

Is good to see them able to put that money to use, instead of me getting it and drinking it...

[silverblizzard888]

Anyone think tomorrows announcement of statements will change much?

[silu]

HALFYR: IFT: Infratil Results for Half Year to 30 September 2013

2013 has been extraordinarily busy. Infratil has divested, invested, and
introduced a new channel for future investment into Australian
infrastructure. It faced some taxing regulatory challenges and threats, and
has been active in hedging and risk management. A new form of share buyback
was announced and then postponed. And the weather played a part with warm
winters in Australia and New Zealand reducing household energy use, while
storms closed Wellington Airport for more time than in any single year since
the 1970s.

The half year was also Infratil's last period with David Newman as Chairman.
David passed away in October; his integrity and long term vision have left an
indelible impression and he will be greatly missed. Mark Tume has been
appointed by the board to be David's successor as Infratil's Chair.

Financial Results / Capital Management

Net parent company surplus for the six months was $230 million (from a $17
million loss in the same period last year). Net consolidated operating cash
flow was $275 million, up from $106 million.

An interim dividend of 3.75 cents per share (from 3.25 cents) is declared.
The increase reflects Infratil's higher cash earnings, sound financial
position and the goal of providing shareholders with growing tangible
returns. The dividend will be paid on 13 December to shareholders on the
register as at 29 November. The dividend reinvestment plan will operate

[Harvey Specter]

The DRiP will be "The price of the DRP shares will be the weighted average price recorded on the NZX over 2 December – 6 December inclusive"

I assume there is no discount.

[silu]

Yes there doesn't seem to be any discount attached to the DRIP. Quickly checked their website for clarification:

The Dividend amount will continue to be taxable as at present. It is anticipated that Infratil’s Dividends will continue to be fully imputed, whether they are received as cash or as Shares.
When a Dividend is declared by Infratil it will be announced if the Plan will be operational (i.e. Infratil can revert to paying only cash Dividends) and if there is to be a discount in the price of the Shares issued.
The price of the Shares issued under the Plan will be the volume weighted average sale price of all Shares which take place through the NZSX market over the 5 trading days after the relevant Record Date.

[silu]

Buyback still going ahead:
Infratil tender offer to buy back up to 24.8 million shares on 5 December 2013

[artemis]

Yes there doesn't seem to be any discount attached to the DRIP. Quickly checked their website for clarification:

The Dividend amount will continue to be taxable as at present. It is anticipated that Infratil’s Dividends will continue to be fully imputed, whether they are received as cash or as Shares. When a Dividend is declared by Infratil it will be announced if the Plan will be operational (i.e. Infratil can revert to paying only cash Dividends) and if there is to be a discount in the price of the Shares issued.
The price of the Shares issued under the Plan will be the volume weighted average sale price of all Shares which take place through the NZSX market over the 5 trading days after the relevant Record Date.

Still could be a discount on the VWAP amount, though. I would be very surprised if there is no discount.

[macduffy]

Still could be a discount on the VWAP amount, though. I would be very surprised if there is no discount.

The way I read it, if they didn't announce a discount when the dividend was declared, then there won't be a discount!

[Harvey Specter]

The way I read it, if they didn't announce a discount when the dividend was declared, then there won't be a discount!I think he meant a discount to market value (ie. the share price has risen but you 'purchase price' is the VWAP from a few days ago).

On another note:

I am a bit confused about the share buy back. I assume no one would put in a price less than market price so it should in theory go at a premium to market price? ANy opportunity for an arbitrage here? Ie. sell into the offer and buy back on market? I assume the big boys will be looking at this such that any return is nominal.

[silu]

They use the VWAP for the 5 days AFTER the dividend record date so in effect the discount is the size of the dividend.

[Harvey Specter]

They use the VWAP for the 5 days AFTER the dividend record date so in effect the discount is the size of the dividend.Thats not a discount as you are getting shares that dont have a right to that dividend, hence the ex-div rate is correct.

[Snow Leopard]

Glasgow Prestwick Airport sale completed for 1 GBP.
The myth that the Scotch are thrifty may not be a myth after all!

Anybody know whether they are going to return that to shareholders via a special dividend?

Best Wishes
Paper Tiger

[Harvey Specter]

Glasgow Prestwick Airport sale completed for 1 GBP.
The myth that the Scotch are thrifty may not be a myth after all!

Anybody know whether they are going to return that to shareholders via a special dividend?

Best Wishes
Paper TigerNO special div but it is the reason they reinstated the share buyback ;)

[Snow Leopard]

Announcement (https://nzx.com/companies/IFT/announcements/244412):


Following the announcement made by Infratil Limited (“IFT”) on 15/11/2013, NZX Regulation (“NZXR”) advises that First NZ Capital Securities Limited (“FNZW”) has received instruction to conduct a stand in the market to acquire up to 24.8 million ordinary shares in IFT at a price of up to NZ$2.60 per share on behalf of IFT.
The Special Order Facility will be provided to FNZW under Rule 13.7.4(r) of the NZX Participant Rules in order to undertake the acquisition. A separate market will be made available under the code IFTX.
This stand in the market will commence at 12.00pm on 5 December 2013. The settlement code will be IFTX. All sell orders must be submitted after 12.00pm and before 2.00pm on 5 December 2013.
IFTX will be in Enquiry until 12.00pm. At 12.00pm IFTX will be placed in Pre-open and sell orders may be submitted until a random time around 2.00pm when IFTX will be placed in Enquiry.
No bids will be accepted in IFTX other than by FNZW on behalf of IFT.
Subject to no termination by IFT, as soon as practicable after 2.00pm FNZW will enter a purchase order for ordinary shares on behalf of IFT as follows:
• If fewer than 24.8 million shares have been offered at prices equal to or less than $2.60 per share, FNZW will enter a purchase order equal to that volume of offered shares. All matched offers will receive the final price (being the highest price offered, but no more than $2.60 per share).
• If more than 24.8 million shares have been offered at prices equal to or less than $2.60 per share, FNZW will enter a purchase order equal to the volume of all shares offered at or below the final price (being the lowest price at which IFT can purchase 24.8 million shares, but no more than $2.60 per share). All offers matched below the final price will receive the final price and be accepted in full. All offers matched at the final price will also receive the final price, but will be scaled on a pro-rata basis in proportion to the number of shares offered at that price. Fractions will be rounded down.
The following conditions apply to this bid:
(a) IFT reserves the right to change the maximum price per share by market announcement any time before 10.00am on 5 December 2013;
(b) IFT reserves the right to terminate the stand at any time before the entry of IFT’s buy order;
(c) FNZW reserves the right to enter sell orders on behalf of its own clients;
(d) In accordance with NZX Participant Rule 11.11.3, undisclosed orders are not permitted;
(e) There are no price escalation terms or any other form of consideration payable;
(f) NZX participants can amend and withdraw offers submitted by them until IFTX is placed in Enquiry around 2.00pm, but after that time offers are irrevocable;
(g) IFT shareholders may tender shares at a range of prices;
(h) IFT shareholders wishing to participate in the buyback should contact an NZX
firm; and
(i) IFT shareholders who participate in the buyback may be charged brokerage fees by the sell-side NZX firm.
NZX will conduct post-trade processing to convert trades in IFTX to IFT.
Trades will be settled on a T+3 basis (i.e. on 10 December 2013).
Trading in IFT ordinary shares on the NZX Main Board will be halted from 12.00pm on 5 December until after the announcement of the final price by IFT, at which time normal trading will resume.
Please contact Client and Market Services on +64 4 496 2853 or email cms@nzx.com with any queries.




Best Wishes
Paper Tiger

[Xerof]

PT,


The myth that the Scotch are thrifty may not be a myth after all!

Ahem,

Scots or Scottish people produce and/or drink Scotch. A person of Scottish heritage would tell you to wash your mouth out (undoubtably with a Scotch), then throw his kilt over your head and thump you with a tossed caber or perhaps a set of pipes

[Harvey Specter]

Announcement (https://nzx.com/companies/IFT/announcements/244412):



Best Wishes
Paper TigerSo stategy wise, assuming you want to continue holding, do you sell into the buyback and try to buy back on-market of just ignore.

Currently trading under $2.40 so put is a offer at (say) $2.50 and hope you can buy back in at $2.40 resulting in a net 4% gain. Not worth the risk as I assume the big boys will arbitrage it down???

[psychic]

What a pain in the butt. Why not just issue a div and let us decide what to do with the cash.
So - tender some / all my shares at $2.60 and possibly miss out? Current SP $2.39 and tracking down despite my perceived higher value.
A little help here PT if you don't mind....

[psychic]

OOps - sorry Harvey. Overtyped you

[Harvey Specter]

Whats everyones though on the stand in the market?

[macduffy]

Whats everyones though on the stand in the market?

It's not a stand in the market, but a chance for shareholders to tender their shares. Should be good for the SP. I'm not tendering any.

[Harvey Specter]

It's not a stand in the market, but a chance for shareholders to tender their shares. Should be good for the SP. I'm not tendering any.Per this, it is a stand:
https://www.nzx.com/companies/IFT/announcements/244756

So you expect the shareprice to rise after this as it removes an overhand of people wanting to sell?

[silu]

IFT is one of the cornerstone holdings of my 5y+ portfolio. I guess people who want to sell into the buyback will do so releasing any pressure. I will be buying more within the current range up to $2.50. I do not expect any major movements for the share price.

[peat]

I don't know about you but I am finding this process a bit unusual.
Assuming there isn't an absolute horde of sellers it should mean you can palm off your shares for up to 2.60 for two hours from midday today.
Given all this is existing knowledge you'd think there would be more upward pressure on the price otherwise one can sell them and then buy them back at current price when the normal market re-opens.?

[Harvey Specter]

I don't know about you but I am finding this process a bit unusual.
Assuming there isn't an absolute horde of sellers it should mean you can palm off your shares for up to 2.60 for two hours from midday today.
Given all this is existing knowledge you'd think there would be more upward pressure on the price otherwise one can sell them and then buy them back at current price when the normal market re-opens.?But I assume the big boys will keep the arbitrage to a minimum??

[peat]

looks like they are acquiring their own shares at less than midday closing price with transactions taking place at 2:20 - 2:35 , so it would appear there are plenty of sellers. Odd, considering market was 2:40 prior to halt

[psychic]

Well, I'm not sure how effective that was at creating Shareholder wealth in general. Good quick way of spending $60m cash, hopefully the 4% dilution will bump the SP up but I doubt it somehow. Seemed to be a lot of sellers....

[silu]

I can't properly think at the moment but I bought another parcel at $2.34 which is a 4c premium to the buyback price so I'm not a 100% certain why the share price is languishing at the moment? But then my timeframe on this one is super long anyway.

[psychic]

Peat - all transactions will go through at $2.38 I think... (?)

[peat]

Peat - all transactions will go through at $2.38 I think... (?)
yes looks like that however there clearly are different prices being paid for different parcels.


5152

[psychic]

Oh great - sp tanks, not a buyer in sight. Well done IFT!

[Harvey Specter]

Oh great - sp tanks, not a buyer in sight. Well down IFT
Well that was unexpected!

[Mista_Trix]

A lot more people wanting to get out that didn't??

[silu]

I'm genuinely confused

[Bjauck]

Is this a lesson in how not to return capital to shareholders? It looks like it has made a lot of shareholders realise that they actually do not want to remain holders!
Disc: IFT shareholder

[macduffy]

A lot more people wanting to get out that didn't??

Yes, that looks like it.

A matter of supply and demand - against the backdrop of an overall soggy market today.

[macduffy]

Is this a lesson in how not to return capital to shareholders? It looks like it has made a lot of shareholders realise that they actually do not want to remain holders!
Disc: IFT shareholder

Or, shareholders hoping to arbitrage the situation by selling to a "willing" buyer and looking to buy back once the buying pressure subsides.

[born2invest]

Can someone please explain to me in simple language what this proposal is?

I read it three times over yesterday and again today and I'm still not sure exactly what is happening.

[Mista_Trix]

Yes, that looks like it.

A matter of supply and demand - against the backdrop of an overall soggy market today.


I was thinking about jumping out, but I missed the whole thing.

I've gotta say there's been some funny decisions lately. I'm in it for the infrastructure part of my portfolio and found the MET purchase to be somewhat outside of where I thought their business model sat. I've already got SUM and I don't want to double up, plus I don't believe MET to be a great investment. The Airport for $1 was a bit of a slap in the face.

I'm generally confused about their strategic direction and was considering moving on at a good price. But now will look to hold for a bit longer as a confuzzled shareholder.

[peat]

Can someone please explain to me in simple language what this proposal is?

I read it three times over yesterday and again today and I'm still not sure exactly what is happening.
its happened
IFT initiated an oddly structured buyback whereby for two hours today they stood in the market and acquired IFTX ( being converted by NZX from IFT ord shares !!) shares that were offered to them with a goal of about 25 million shares at up to 2.60.
It appears 35 million went through at an average price of 2.38.

IFT Shares were trading again after the two hour break and immediately the price fell from 2.40 to to 2:20 and is now trading at 2.24.

A bizarre outcome - I think it indicates that there were a lot of sellers lurking around.

If you thought IFT was good value before you should be loving it now. But of course market determines price not value.

[psychic]

This was not a deal for the little guy eh? Big holders were able to flog off large parcels without driving down the price while they off loaded - and the remaining shareholders pay for it.
Infratil explained this tender process as a way to create a "liquidity event" Yeah right.

[psychic]

I was thinking about jumping out, but I missed the whole thing.

I've gotta say there's been some funny decisions lately. I'm in it for the infrastructure part of my portfolio and found the MET purchase to be somewhat outside of where I thought their business model sat. I've already got SUM and I don't want to double up, plus I don't believe MET to be a great investment. The Airport for $1 was a bit of a slap in the face.

I'm generally confused about their strategic direction and was considering moving on at a good price. But now will look to hold for a bit longer as a confuzzled shareholder.

Totally agree. Then the Aussie funding deal with Leightons. Diworsification as Peter Lynch calls it.

[Mista_Trix]

Totally agree. Then the Aussie funding deal with Leightons. Diworsification as Peter Lynch calls it.

On the plus, if the whole water irrigation thing plays out well then I'm happy about that, but I cant pick them at the moment, which I find both confusing and a bit of a worry.

[stones]

Dont worry fellows. Go and buy some more and lower your average share cost price. Not a big deal for long term holders

[Harvey Specter]

Or, shareholders hoping to arbitrage the situation by selling to a "willing" buyer and looking to buy back once the buying pressure subsides.I was wondering if it was the other way around. Traders buying in, pushing up the price, expecting to be able to sell at up to $2.60, and then flooding the Stand, so having to bail out at a loss.

[Xerof]

I was wondering if it was the other way around. Traders buying in, pushing up the price, expecting to be able to sell at up to $2.60, and then flooding the Stand, so having to bail out at a loss.

never a truer word said....

[macduffy]

I was wondering if it was the other way around. Traders buying in, pushing up the price, expecting to be able to sell at up to $2.60, and then flooding the Stand, so having to bail out at a loss.

Perhaps, but I wouldn't have thought that the volumes indicate that. The company has bought back 24m shares but less than 4m were traded on the market today.

[Mista_Trix]

$680k went through after close of market ... what exactly is going on with this stock...??
I cant pick it.

[Bjauck]

$680k went through after close of market ... what exactly is going on with this stock...??
I cant pick it.
Before the buy back IFT was trading in the $2.40's. Since the buy back, it has been trading in the $2.20's. It looks like the buy back did nothing for the share price. Part of the reason may be that its main investment, TPW is in a currently unloved "politicised" sector in an election year.

IFT was hoping to get a stake in TPI NZ but missed out today to the Chinese. IFT sp gained a couple of cents on the news. Did the market think that IFT had a lucky escape?

[Mista_Trix]

Before the buy back IFT was trading in the $2.40's. Since the buy back, it has been trading in the $2.20's. It looks like the buy back did nothing for the share price. Part of the reason may be that its main investment, TPW is in a currently unloved "politicised" sector in an election year.

IFT was hoping to get a stake in TPI NZ but missed out today to the Chinese. IFT sp gained a couple of cents on the news. Did the market think that IFT had a lucky escape?

Personally I would have liked to see them acquire it. I'm a bit stumped with the others lately, but this seemed to line up with their portfolio nicely, never mind.

[Bjauck]

Personally I would have liked to see them acquire it. I'm a bit stumped with the others lately, but this seemed to line up with their portfolio nicely, never mind.
I was broadly in favour of the TPI purchase too. Perhaps IFT was not willing to stump up with as much as the Chinese. It would have been good for IFT to do a Z Energy style turn around with Waste Management with an eventual refloat on the NZX. I see TPI.AX sp is up a tad against a falling market- so it appears the market is please with the price they got for Waste Management NZ.

I wonder what will happen with MET? Will there be a further buy in at some stage? Maybe they just saw an undervalued company in a growth sector with potential.

[Mista_Trix]

I was broadly in favour of the TPI purchase too. Perhaps IFT was not willing to stump up with as much as the Chinese. It would have been good for IFT to do a Z Energy style turn around with Waste Management with an eventual refloat on the NZX.

I wonder what will happen with MET? Will there be a further buy in at some stage? Maybe they just saw an undervalued company in a growth sector with potential.

Surely aye if they want to pull the 'Lets get our change managers in there, shake it up, and make it a well functioning business" to then sell forward.
Otherwise I don't quite see why they've purchased it, not the most logical match for what they've already got, but compared to SUM and RYM it does look like its management component is the weaker of the three.

Yeah disappointing about TPI, not sure what the market knows that we don't as to why losing this bid was sooo positive (largest movement on the stock for a while).

[Harvey Specter]

I wonder what will happen with MET? Will there be a further buy in at some stage? Maybe they just saw an undervalued company in a growth sector with potential.Look at the MET thread. Good growth Sector but historically managed poorly. They need to improve management, increase the build rate and bring the development inhouse (aka Rym model). IFT should cause this to happen. With superfunds voting block, they have effective control so no need to increase further - share the risk but share the gains.

[Harvey Specter]

I was broadly in favour of the TPI purchase too. Perhaps IFT was not willing to stump up with as much as the Chinese.Hard to beat the chinese when they want something with there big pockets, cheap debt and they can (legitimately???) structure so they never pay tax as they have done with the Wellington Electricity Network.

[horus1]

And you as a NZ taxpayer get ripped off. Nz companies cannot compete to buy NZ assets as they are discriminated against by the NZ Govt. Isn't time we woke up

[Harvey Specter]

And you as a NZ taxpayer get ripped off. Nz companies cannot compete to buy NZ assets as they are discriminated against by the NZ Govt. Isn't time we woke upsame the world over. NZ rules actually quite good as we can't control what happens overseas.

I'm sure IFT used all the tricks in the books when it bought those dud airports, and TPW when it builds stuff in Ozzie.

[Mista_Trix]

NZ Bus Wellington;
http://www.stuff.co.nz/national/9830825/The-lines-are-coming-down

[Mista_Trix]

Looks like ACC is buying up while its still unusually low;
https://www.nzx.com/companies/IFT/announcements/248352

[BlackPeter]

Looks like ACC is buying up while its still unusually low;
https://www.nzx.com/companies/IFT/announcements/248352
very inconsiderate of them to jump queue while I am still waiting for my order at $2.20 to be completed ...;)

[Bjauck]

very inconsiderate of them to jump queue while I am still waiting for my order at $2.20 to be completed ...;)
Infratil has been in the doldrums due to its TPW holding I think....the ACC increase is a vote of confidence.

[peat]

Infratil has been in the doldrums due to its TPW holding I think....the ACC increase is a vote of confidence.

depends whether you consider ACC a good investor or not ;+)

[macduffy]

depends whether you consider ACC a good investor or not ;+)

Well, either way it's a vote of confidence from ACC. Of course, they have such a lot of funds to invest and the NZ market is so small...

[Hawkeye]

https://www.nzx.com/companies/IFT/announcements/249128

[Mista_Trix]

Anyone got any insight into the massive numbers through in the last hour?

[BlackPeter]

Quite serious allegations raised against Wellington City Transport Ltd (a subsiduary of NZ Bus, which belongs to IFT):

http://www.stuff.co.nz/business/industries/9986712/Claims-lack-substance-transport-boss-says?cid=edm:stuff:dailyheadlines

"She'll be right" over "safety first"?

[Mista_Trix]

Some pretty serious numbers moving round before open as well.

[BlackPeter]

Some pretty serious numbers moving round before open as well.

Might be the Trustpower factor. Maybe somebody noticed that all the power suppliers (like e.g. MRP, MELCA, CEN) went up recently, while IFT (half of its value is in Trustpower) hardly moved?

[Lizard]

Was just rushing through the weeks paperwork and about to tip the Infratil update into the recycling when I took a cursory glance inside... fascinating reading! A comparison between 1994 and 2014. No doubt there will be many here who have invested in almost all those stocks listed as top 20 for 1994 (I think I'd managed about half of them).

At first I thought they had the airfare wrong... we flew back from London in 1991 and my memory was about £1060 for the two of us... but then I remembered that the exchange rate around then was 0.27... guess that might explain the car prices as well!

[silu]

I usually despise fancy reports but their comparison was a thing of beauty.

[bull....]

nice breakout from head an shoulder bottom, bottom of range 2.17 nice gains to top 2.50

[Harvey Specter]

From memory, and I might be wrong because I cant find it, IFT put out a presentation where they valued all their subsidiaries, and in particular noted a EBITDA multiple for NZBus which is one of the few investments they have that is recorded at historical cost and has no identifiable market value or industry comparatives.

Does anyone remember that presentation and can point me to it?
Does anyone have a market value for NZBus and how have you valued it?

[bull....]

http://www.stuff.co.nz/business/industries/10065847/New-bid-for-PayGlobal

didnt relise - The largest shareholder in PayGlobal is infrastructure investor Infratil and according to Companies Office records owns 54 per cent of PayGlobal. The investment dates from the early 2000s.

So if MYOB is so interested in this asset why hasnt infratil looked at floating this company as it must have appeal?

[macduffy]

So if MYOB is so interested in this asset why hasnt infratil looked at floating this company as it must have appeal?

It doesn't automatically follow. Owners of successful businesses don't need the restrictions of exchange listing - unless, of course, they can't raise sufficient working capital otherwise - or they want to cash out!

:cool:

[Harvey Specter]

http://www.stuff.co.nz/business/industries/10065847/New-bid-for-PayGlobal

didnt relise - The largest shareholder in PayGlobal is infrastructure investor Infratil and according to Companies Office records owns 54 per cent of PayGlobal. The investment dates from the early 2000s.

So if MYOB is so interested in this asset why hasnt infratil looked at floating this company as it must have appeal?Wonder how big it is. Would be in their books at historical cost so probably gets lost in the rounding. No 8 Ventures has spun out to investors so a compliance listing would be an obvious alternative if t was worth a decent amount.

[bull....]

It doesn't automatically follow. Owners of successful businesses don't need the restrictions of exchange listing - unless, of course, they can't raise sufficient working capital otherwise - or they want to cash out!

:cool:

listing the stock would free up cash and the remaining holding could be end up being worth considerably more than the total value now - isnt that what infratil stated in there latest results they want to do is create value for shareholders from realising and selling some of there current investments?

[Harvey Specter]

It doesn't automatically follow. Owners of successful businesses don't need the restrictions of exchange listing - unless, of course, they can't raise sufficient working capital otherwise - or they want to cash out!Not necessarily IFT but other holders such as the No8 Ventures investors and K1W1 would probably want to recycle their investment into other companies.

THis really shows the failure of the NZAX. Hopefully the NZGX is better.

[macduffy]

Not necessarily IFT but other holders such as the No8 Ventures investors and K1W1 would probably want to recycle their investment into other companies.

THis really shows the failure of the NZAX. Hopefully the NZGX is better.

Really?

Perhaps the owners of PayGlobal see further potential in their company and don't wish to share the spoils via the market at this stage. The NZX may not be the smartest exchange in the world but not every successful business wants to become a listed company.

[bull....]

Positive announcements recently from some of infratils investments - trustpower upgrade earnings for next yr cause snowtown coming on line , metlifecare upgrade earnings this morning for next yr.

I think they will do well long term from wellington airport upgrade, nz bus though i dont like as dont see much earnings growth or return from that investment and z energy is lmited in growth and mature investment hpoefully they sell out? and re-invest in something better although divs are alright

[bull....]

breaking thru 61.8% retracement from recent down trend if holds may go top of range 2.5 - 2.55 - div ex on tuesday 7c

[silu]

I'm backing Infratil to do very well over the next few months. In fact I have accumulated quite a lot (for the size of my portfolio) over the last few weeks.

[bull....]

I'm backing Infratil to do very well over the next few months. In fact I have accumulated quite a lot (for the size of my portfolio) over the last few weeks.

yes I particularly liked the comments about rejuvenating there portfolio

[bull....]

last day to get div today, ex tomorrow

[kiora]

Ex 7 cent div on 29-5-14
+ Up 4.5 cents today on good vol :)


last day to get div today, ex tomorrow

[macduffy]

Sale of Australian energy assets reported on Radio NZ.

http://www.radionz.co.nz/news/business/254573/infratil-sells-australian-energy-firms

Outcome "higher than company expected".

:)

[silu]

Looks very positive to me. Was hoping for a re-rating anytime soon so this should get a good boost.

discl. hold IFT

[bull....]

Nice outcome lets hope they use the funds well

[Beagle]

Can someone please explain to me how Morrison and Co can possibly justify getting a whopping $44m out of this sale ?
Seems to me when they stuff it up like they did with the European airports or Wellington buses they get away with that Scott-free and when there's a windfall gain all that is forgotten and they're in there like a hippo sized greedy pig first at the trough for a massive feed. Selling off the silverware so the rest of the tarnished collection doesn't look so bad ?

Disc - don't own IFT.

[kiora]

Nice re-rating :)
Even more money in bank for Morrison & Co

[macduffy]

As Infratil is a "creation" of Morrison and Co we should expect that the management contract is written accordingly! We don't have to invest in IFT - I do - but whatever we might think about that, the market likes the news and has re-rated IFT's SP by 6% today.

[kiora]

Wow up another 11 c in early trading !