Interesting: APX have several wells with gas and/or oil that are being tested.
I must admit that at the moment I am surprised by this investment.
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Interesting: APX have several wells with gas and/or oil that are being tested.
I must admit that at the moment I am surprised by this investment.
Also as part of the deal IFT have been given warrants to buy Austral Pac shares at NZD 5.16 within 12 months.
At current price of NZD 3.60 it is surely a very very long shot.
Infratil enters exploration arena
28.09.05
By Chris Daniels
Infratil is moving on "upstream", saying it has invested in an 11 per cent stake in oil and gas explorer Austral Pacific.
Austral Pacific has sold the shares in a placement, with Infratil buying in at $3.60 a share, investing just over $9 million.
Its shares have traded on the NZX at prices ranging between $3.80 and $4.30 this year. Infratil is also getting 1.228 million unlisted Austral warrants as part of the deal. These allow it to buy additional shares in Austral Pacific at US$3.50 ($3.66) each any time in the next year.
Infratil's energy investments are its 35.2 per cent stake in TrustPower, the fifth-largest power company in New Zealand, with a generation business and retail customers. It also has a 20 per cent stake in an Australian green energy producer, Energy Developments, and a share in Victoria Electricity.
This is its first foray into oil and gas exploration, known in the energy sector as the "upstream" part of the business.
Company founder and Infratil chief executive Lloyd Morrison said in August that there was little scope left in New Zealand for new Infratil investments, with further infrastructure privatisations off the political agenda of both major parties.
Infratil's recent investments have been in airports, with it spending $46 million buying Kent International Airport in Britain.
Infratil's share price has increased this year from a January low of $3.29 to a high of $4.15 in mid-August. It shares closed yesterday up 2c at $3.86.
Austral's home listing is on the Canadian TSX exchange, and its shares are also traded on the AMEX board and the NZX.
Talk around its Cardiff deep gas exploration well has been positive for some time, despite final testing of gas flows yet to be completed. It is the field operator, with state-owned energy company Genesis owning a 40 per cent stake in the project. Genesis wants gas from wells such as Cardiff to burn in its power stations.
Bruce Harker, executive director of Infratil's management company Morrison and Co, told the stock exchange to expect the company's exposure to the upstream sector to stay modest.
"The recent lift in New Zealand gas prices are likely to be sustained and this should allow profitable development of smaller onshore gas fields."
Infratil also believed that the Government would increasingly pressure permit holders to meet their indicated exploration plans and that this would result in smaller exploration companies seeking additional capital. This would "provide acceptable entry pricing for investors".
Crown Minerals asks companies to bid for the right to explore for oil and gas. Explorers do not pay a lot for the permit, but the winner is the one that promises the most work, usually seismic research or drilling.
This is where the big drain on resources happens, with explorers looking to "farm out" stakes and bring in partners to help pay for expensive drilling programmes.
"Infratil would look to support Austral Pacific should it require capital to maintain its interests in successful discoveries as these move from exploration to more substantive long-term production infrastructure investments," said Harker.
He also said that in the short term "no specific linkages are seen between Austral Energy and Infratil's other New Zealand energy sector investment at TrustPower".
* Infratil chairman David Newman, who is also chairman of Austral Pacific, was excluded from taking part in its consideration of this investment, said the company.
Hey mon, Dave New-mon, mon, is chairman of both IFT and Austral mon. Maybe he thinks Austral's Cardiff gas field will come up trumps mon.
Sorry Toddy, last time I looked was a few years ago, and they were definitely out of the money back then, I have recollections of the SWERF project of ENE nearly sending the company under.
Kura you are right to the extent that when ENE puled out of the swerf project, there was a dip in their SP that meant the price was below acquistion value, however that was only a short term thing, the shares are trading at 4.80 which is probably about double what IFT paid.Quote:
quote:Originally posted by kura
Sorry Toddy, last time I looked was a few years ago, and they were definitely out of the money back then, I have recollections of the SWERF project of ENE nearly sending the company under.
As to the latest move, the one fact we do know is that every energy investment that IFT have ever made has turned to gold.
IFT have been out and about in Kent. The guy from Kent opposite me at work showed me a copy of the local paper today where KIA had an advert asking locals where they would like to fly to in Europe/U.K/Irland etc. There was even as prize up for grabs, a 20 minute flight around Kent, a hotel for the night and a bottle of bubbly.
Its good to see that they are getting involved with the local community which is very unusual in this part of the world.
Thats the end of cheap IFT stock.
IFT
25/10/2005
BUYBACK
REL: 0956 HRS Infratil Limited
BUYBACK: IFT: Infratil Announces its Intention to Buyback Shares
Infratil Announces its Intention to Buyback Shares
In accordance with Listing Rule 7.6.2 Infratil announces its intention to buy
back some of its ordinary shares commencing after the announcement of its
half year result on 8 November 2005.
Specifically, the buybacks will occur from 9 November 2005 through to 8
November 2006 and be for up to 21.5 million ordinary shares
And Luebeck Airport is on again. IFT really is a true LTB&H stock.
Toddy, suggest you grab the B warrants then!
Stagecoach?
Puzzled Tiger
Stagecoach NZ figures from Stagecoach plc summary report for 2005.
Figures are millions NZ$
<pre id="code">
2005 2004
Turnover 160.6 160.9
Profit* 23.7 29.5
</pre id="code">
*Profit is described as operating profit and is, I believe, pre-tax.
2005 reflects competition from the revamped train service in Auckland, (well that's what the report says).
Stagecoach appeared to be expecting a lesser result 2006 due to trains and the six day strike in Auckland.
I guess it depends upon the price to be paid.
The difficulty with integrated public transport in Auckland is the myriad of operators. If Infratil can buy up the opposition and create a unified system that can flow to transport hubs and on from there via express buses/trains/ferries on a single unified ticket public transport is going to become much more attractive for traffic jammed Aucklanders.
Infratil to buy Stagecoach NZ business
18 November 2005
Infrastructure investor Infratil has entered into a conditional agreement to buy Stagecoach's New Zealand bus and ferry business.
Infratil did not disclose the purchase price, but said it would make a further announcement no later than November 29.
Stagecoach operates bus services in Auckland and Wellington, with about 365 buses in Wellington and 658 buses in Auckland. Stagecoach also owns Fullers ferries in Auckland.
Earlier this month Infratil indicated it was on the lookout for more acquisitions.
The purchase is the latest in a string of acquisitions by Infratil, which so far this year has bought Kent International Airport for $47 million, completed a conditional acquisition of 90 per cent of Luebeck Airport in Germany and bought an 11 per cent stake in small oil and gas explorer Austral Pacific for $9 million.
Infratil's other investments include a 66 per cent stake in Wellington Airport, full ownership of the Glasgow Prestwick Airport in Scotland, an 88 per cent stake in Victoria Electricity and a 35 per cent holding in TrustPower.
Shares in Infratil were placed in a trading halt ahead of the Stagecoach announcement, which was made after the sharemarket closed today.
Prior to the trading halt, Infratil shares were trading up 1c at $3.68, having ranged between $3.21 and $4.15 over the past 12 months.
Any estimates of the purchase price, at 6 - 8 times profit (Using PT's figures) would have a purchase price of around $140m - 200m, quite a risky punt compared to there other recent investments surely.
Whilst NZ news seem to regard this as a done deal, overseas news sources seem to be implying that there is many a slip between cup and lip, so to speak.Quote:
quote:from www.telegraph.co.uk
Stagecoach 'could offload its NZ operations'
By Caroline Muspratt (Filed: 18/11/2005)
Transport group Stagecoach, which runs South West Trains and Megabus, could sell its New Zealand operations after receiving several approaches for the business.
Stagecoach runs South West Trains and Megabus
The company said it was in discussions over a possible sale of the arm to Infratil, an investor in infrastructure and utility assets that is listed on the New Zealand stock exchange.
Stagecoach said it had "received several approaches" for the New Zealand operations though there was no certainty a disposal would take place.
A spokesman for the company said: "We’ve got a duty to consider and approach that we receive."
It is understood the statement was prompted by an announcement by Infratil on the New Zealand stock exchange.
Infratil said in its statement it "has entered into a conditional agreement with Stagecoach plc with respect to acquiring the New Zealand bus and ferry business of Stagecoach plc."
It added: "A further announcement is expected by not later than 29 November 2005."
Stagecoach’s New Zealand operations involve urban bus passenger services in Auckland and Wellington. It also owns Fullers ferries in Auckland.
The group reported sales of £59m and operating profit before goodwill of £8.7m in respect of its New Zealand operations last year.
Bus line fits with Infratil strategy
19.11.05
By Chris Daniels and NZPA
It does not quite count as a privatisation, but the sale of the formerly local government-owned Stagecoach bus and ferry company is exactly the kind of investment Infratil was set up in the mid-1990s to pursue.
In August, company founder and chief Lloyd Morrison said there seemed to be little scope left for new Infratil investments here, since further infrastructure privatisations were off the political agenda of both major parties. "Although I believe strongly the country would be better off with a change of ownership structures across a lot of areas of infrastructure, I just don't think it will happen," he said.
Infratil yesterday entered into a conditional agreement to buy Stagecoach's New Zealand bus and ferry business for an undisclosed sum.
The philosophy behind the Infratil business is to buy infrastructure assets when they are good value, then turn them around, waiting until the investment matures before deciding whether to sell out - which can be a long time.
Infratil has no staff and its assets are managed by executives at founder Morrison's investment bank Morrison & Co. It takes a strong, active interest in the management and operations of the companies it buys into.
The strategy has generally paid off well. A subscriber to the Infratil shares in its float in March 1994 has received a return of 20 per cent per annum return after tax over the 11 years to March 2005. This includes dividends.
The Stagecoach purchase is the latest in a string of acquisitions by Infratil, which so far this year has bought Kent International Airport for $47 million, completed a conditional acquisition of 90 percent of Lubeck Airport in Germany and bought an 11 percent stake in oil and gas explorer Austral Pacific for $9 million. Other investments include a 66 percent stake in Wellington Airport, full ownership of the Glasgow Prestwick Airport and an 88 percent stake in Victoria Electricity.
Another trading halt.
Why not speculate on what the IFT trading halt is for.
Surely they would not ask for another halt before releasing more information about the Stagecoach deal. The market is already aware that a conditional deal has been done.
Maybe investments in
Christchurch Airport
Increase in Wgtn Airport, TPW or Energy Developments.
Another European Airport
Or something along the lines of PPP who are tied up in the Tui Oil field and Hector.
Who knows........... any ideas out there.
I will assuming that the exercise of warrants is not the reason for this halt. But otherwise I am happy to just wait for the information.
Interesting move buying the buses/ferries. Quite a significant shift in focus I feel. Up to now has all been about buying infrastructure. Now it will also be a public transport operator. Much bigger risks, much slimmer margins. Stagecoach has been very successful in the UK, but it is a different structure there with competing bus operators. Here it is basically one in each city (with a couple of routes being exceptions).
I disagree with the above article, I don't see that it fits their philosophy at all. Plenty of companies that do, e.g. Aussie toll road operators
What next? MFT? AIR?
Well they reckon they have bought it and they say they are going to pay NZ$250.5 for the priviledge.
Like Placebo I have my reservations about this I would hope that we get a very full statement answering the Why? pretty promptly. Until then I will try and reserve judgement.
Isn't stagecoach the equivalent of buying an airline rather than the airport?
Time will tell. But Morrison and Co have experience in running public transport services and know exactly what they are getting themselves into.
For my money its significantly better than investing in Austral Pacific where they do not have limited management input, there is either commercial gas in Cardiff or there isn't.
What was the second trading holt for? Did they just provide more details?? {just read the announcement - that was very quick between conditional and unconditional)
What is Go Bus? Is it the equivalent to Stagecoash in the Waikato?? Will Infratil look to buy out Morrison and Co on this to get even bigger economies of scale??
And the price they paid reflects that uncertainty. If there is it will pay of, if there isn't it wont. A gamble yes, But ...Quote:
quote:Originally posted by Toddy
there is either commercial gas in Cardiff or there isn't.
In theory Stagecoach is a mature business. It has been around since (at last my whole life) so how can they improve or are they just buying for cashflow?? Interestingly, they bought it for a P/E of 6.7. If Infratils P/E is greater than this (which it is at 26), does that instantly increase the value of IFT or does it reduce th P/E we should be applying to IFT?? I expect the later.
This is an oddball move. Is there any growth potential in public transport? Sector relies on heavy local government subsidies.....not a good investment if you ask me.
Their recent investment in the graphics company Isite now makes total sense.
IFT management must have been pretty confident about the Stagecoach deal at the time they purchased the advertising company. The advertising side of the Stagecoach business must be worth big money alone.
IFT valuation.
In the past IFT has been valued by the market on a discounted NAV basis. As IFT becomes more of a cashflow company maybe the analyists will factor in the PE ratio.
Lets see what happens when the market opens tomorrow. Stagecoach unlike other recent investments has a solid cashflow so I think that the market will welcome the news.
Have we seen the last of investment announcements from IFT for the year ot will their be more to come.
Is this an example of IFT management being pro-active.
From the Stagecoach U.K site.
Disposal of New Zealand operations
21/11/2005
Further to its announcement of 18 November 2005, Stagecoach Group plc (“the Company”) is pleased to announce that it has now agreed unconditional terms for the divestment of all of its New Zealand operations (“Stagecoach NZ”) to Infratil Limited, a company listed on the New Zealand Exchange that is a specialist investor in infrastructure and utility assets. The divestment is expected to complete by 29 November 2005.
Stagecoach NZ operates bus services in the Wellington and Auckland areas of New Zealand, and ferry services in the Auckland area.
The enterprise value agreed for the disposal is NZ$250.5m, to be settled in cash. The cash payable by Infratil will be adjusted to take account of cash retained by Stagecoach NZ. After taking account of this, together with transaction costs and the impact of the Group’s foreign exchange rate hedges, the disposal is expected to result in a reduction in the consolidated net debt of the Company of approximately £95m.
The turnover and operating profit reported in the Company’s consolidated accounts for Stagecoach NZ in the year ended 30 April 2005 were £59.0m and £8.7m respectively, under both UK GAAP and IFRS. The gross assets of Stagecoach NZ as at 30 April 2005 were approximately NZ$308m. The consolidated net gain on disposal is expected to be approximately £20m.
The proceeds of the disposal will initially be used to reduce net debt, and the disposal is not expected to materially impact consolidated earnings per share.
The management team of Stagecoach NZ led by Ross Martin (Executive Chairman) will remain with Stagecoach NZ under its new owner.
Brian Souter, Stagecoach Group plc Chief Executive, commented: “The Group’s New Zealand operations have been tremendously successful under our ownership, delivering excellent financial returns. We received an approach about the possible sale of the business and, after assessing Infratil’s offer and the prospects for the New Zealand operations, we concluded that the disposal was in the best interests of our shareholders. We remain focused on our strategy of maximising shareholder value from the Group’s portfolio of bus and rail businesses through organic growth and we are continuing to explore the potential for complementary acquisitions in the UK and North American bus markets."
No shareprice reaction and only a small reduction in the warrents.
Are people uncertain or thyey just dont care??
A reasonably stable cashflow, little competition, cashflows underwritten by public funds. The acquisition has the hallmarks of many standard infrastructure investments. I think it's pretty much business as usual.
I suspect public transport is also a modest demographic play: The aging population in the longer term assisting Stagecoach's least profitable routes during the day. While the major cities will most likely continue to promote and support public transport in the face of higher than norm population growth and the congestion / distribution / infrastructure challenges this creates.
Infratil's Stagecoach acquisition presentation is available on their announcements page and I must say it does not actually strike me as a great deal for Infratil (and thus me).
a cue for all you Monty Python fan's out there:
I didn't expect the Stagecoach Acquisition...
forget the buses for a moment.
Surely it's abrilliant plan to expand the ferry services in all directions Riverhead, Albany, PtChev, Upper Harbour, warkworth, Walkworth. Good for traffic congestion, good for tourism, good for IFT holders.
Sea unites and land divides in Asia and the Pacific, Eurocentric infrastructure assumptions are fine in the Northern Hemisphere!
Wake up and smell the sea breeze because hopefully all those smelly buses will run on chip fat from ferry patrons.
[8]
Shareholder discount???
Infratil plans quick Stagecoach payoff
23 November 2005
By MARTA STEEMAN
Infratil has forecast positive earnings from Stagecoach's bus and ferry business in the year to March 2007.
The infrastructure investor earlier said it had finalised a deal to buy the business for $250.5 million.
Yesterday it said growth would come from a likely doubling of funding for public transport in the next 10 years.
The Auckland Regional Transport Authority was looking at a 10-year plan for public transport funding of bus, ferry and rail services and Stagecoach was represented on the working groups.
Stagecoach executive chairman Ross Martin said the authority wanted to boost bus trips from about 45 million a year in Auckland to 90 million in the next 10 years.
In the future, public transport funding would not be about lowest price tenders but value for money. The existing tenders would remain in place till a new structure for funding public transport was resolved.
Longer-term and larger contracts were a likely outcome from the review of funding public transport services.
Infratil executive chairman Lloyd Morrison said Morrison and Co, which manages Infratil's investments, had become a 41 per cent shareholder in Waikato bus company Go Buses. The experience led it to develop an interest in Stagecoach a couple of years ago.
Infratil said the purchase would be funded from existing facilities. After the acquisition, total debt would rise to about $590 million. Gearing would be a comfortable 41 per cent.
The Stagecoach deal was expected to be earnings per share positive (pre amortisation of goodwill) in its first full year, the year to March 2007.
Stagecoach's revenue for the year to April 30, 2005, was $165 million. Earnings before interest, tax, depreciation and amortisation were $35 million.
Infratil forecast Stagecoach's ebitda to rise 11.5 per cent to $39 million in the year to April 2006, partly as a result of fare increases.
Of the $165 million in revenue from the bus services in Wellington and Auckland and the ferry services in Auckland, $115 million was fare revenue.
Two-thirds of the business is in Auckland and a third in Wellington. The average age of the fleet is eight years. New buses have cost $70 million in the past three years.
A nice little article on Bloomberg.
Infratil Bus Purchase May Get Auckland Motorists Out of a Jam
Nov. 28 (Bloomberg) -- Gilbert Ullrich has opened more branches of his aluminum products business in Auckland to cut time lost by delivery trucks stuck in traffic jams in New Zealand's biggest city.
Auckland ``is being suffocated by the traffic,'' said the owner of Ullrich Aluminium Co., New Zealand's largest maker of aluminum ladders, joinery and boat fittings. ``We need decent public transport.''
As of this month, expansion of bus services will be the job of Infratil Ltd., a Wellington-based utilities investor, which agreed to buy bus companies in Auckland and Wellington from Perth, Scotland-based Stagecoach Group Plc for NZ$251 million ($173 million). The buses are subsidized by local governments that vowed to woo more commuters out of their cars and on to buses.
Fourteen years of economic growth has filled Auckland's streets with new cars, slowing morning rush hour traffic to an average 35 kilometers an hour (22 mph) according to the Regional Transport Authority. In the next 11 years the city's population is forecast to grow 25 percent to 1.6 million people, putting another 100,000 vehicles on the road.
Two-thirds of Stagecoach's bus fleet is in Auckland, where the Authority plans to spend NZ$6.8 billion on roads in the next 10 years to ease congestion. Another NZ$3.8 billion will go on improving public transport in an effort to double the number of bus trips to 90 million a year.
`National Focus'
``For environmental reasons, for congestion reasons, there's very much a national focus on improving public transport,'' said Lloyd Morrison, whose investment bank manages Infratil. ``The outlook for the sector is good and we expect a considerable increase in patronage over the next 10 years.''
The acquisition adds 1,023 buses, 10 depots and nine commuter ferries to Infratil's investments, which include a controlling stake in the airport company in the capital city of Wellington, and three other international airports. The company also owns electricity utilities.
Infratil's purchase comes six months after a strike by drivers put Stagecoach buses off Auckland's roads for seven days. Patronage has also fallen since 2003, following competition by new rail services and a decline in the number of Asian students studying in the city.
``To run buses you have to do lots of little things well all the time,'' said John Norling, who helps manage the equivalent of $590 million at Alliance Capital Management in Wellington. Infratil is a good manager which will get its share of new business in Auckland. Whether it can translate that into better- than-average returns is yet to be seen, he said.
Local Ownership
Building solid businesses in a strong national economy is a key theme for Morrison, 48, who was deputy chairman of the country's stock exchange until he resigned in September because of other commitments.
In the past year, he campaigned against an alliance proposed between Qantas Airways Ltd. and Air New Zealand Ltd., the biggest airlines serving the country, and a bid by Australia to take over regulation of New Zealand's banks.
Infratil is also leading a so-far unsuccessful bid for government approval to convert a military airbase into a second airport to serve Auckland, the nation's most-populous city.
``We're not doing it because we're a charity,'' Morrison told the New Zealand Herald in August. ``We're doing it because we're a New Zealand company and it's in our interests that New Zealand is better off and more competitive as a nation.''
Stagecoach
Stagecoach, the U.K.'s third-largest bus operator, bought its first New Zealand buses in 1992 from Wellington City Council after a law change designed to increase competition in public transport and encourage councils to sell their stakes in bus companies, ports, and power companies to pay for roading, water and sewerage.
The spate of asset sales that followed resulted in Canada's Transalta Corp. becoming one of the
Right place, right time is at core of Infratil strategy
03.12.05
By Chris Daniels
On the face of it, last month's $250 million purchase of the bus and ferry company Stagecoach NZ is a departure from Lloyd Morrison's usual practice of buying into "pure infrastructure": utilities, ports and airports.
But Morrison's success at Infratil, which he founded in 1994, stems from a knack for accurately spotting changes in society or the economy and then picking a way of making money out of it. He is hoping Infratil's purchase of Stagecoach will be no different.
Morrison now finds himself coming to the attention of a wider constituency, this time one made up of taxpayers, ratepayers and public officials - all of whom want to know exactly where this "big picture vision" may be going.
Spend a few minutes listening to Waitakere Mayor Bob Harvey and you may be convinced we should all be hitching our wagons to the Morrison-Infratil star.
"This guy is a remarkable entrepreneur," says Harvey. "He's got a social conscience. He is highly regarded in the business world. He's a renaissance man. He likes music. He likes literature."
Harvey came to have close dealings with Morrison and Infratil during an unsuccessful collaboration to turn Whenuapai airfield into a commercial airport.
"He's aware. He is in tune and he understands that everything is connected - the transportation, air travel. He understands the minutiae of business, small and big," says Harvey. "I think he's probably one of the most impressive business people of recent times. I think there's a big picture in his mind."
Local councils, ratepayers, commuters and shareholders all have a greater stake now in how this "big vision" actually works in practice.
Through Stagecoach's bus and ferry operations, Infratil will be receiving many millions of dollars in public transport contracts.
Stagecoach is expected to get $48 million in public subsidies for Auckland buses alone this year, a combination of Land Transport New Zealand and Auckland Regional Council money channelled through Arta, which contracts public transport services.
Morrison points out that on top of all considerations at Infratil is creating value for its shareholders.
"That means performing on a longer-term basis. That's something that's not easy to do. We think that we're okay at our jobs, but we don't think we're any better than anybody else."
As close as we get to an over-arching vision or big picture from Morrison is an idea that no matter how clever you might be, you have to be in the right place.
"We've recognised that the most important thing for creating value is being in the right place. So we spend a lot of time trying to be in the right place."
Morrison has said it did not matter how good a manager was, if he or she was in a declining industry, there was little chance of success.
"Most people, whether they are a dairy owner, corporate magnate or even an artist in Switzerland, are better off than the best in Zimbabwe."
Infrastructure is undergoing significant change, not just in New Zealand, but everywhere.
"So we position ourselves for that and, within infrastructure, we've looked for sectors that have major change taking place over a period of time, plus good growth prospects.
"The reason we've done well over the past 12 years is because utilities as a whole have done well. The reason we've done well in TrustPower is because renewables have done well. The reason we've done well in airports is because most airports which have exposure to low-cost airlines have done well.
"So we don't attribute our performance to our own ability. We attribute our performance to being in the right place and, I believe, that's something you can't ignore."
The trick is in knowing exactly which part of the sector to put your money into. Accurately predicting the surge in European low-cost airlines is one thing, but knowing to invest in airports, not the airlines themselves, is where the skill of Morrison and his team can be seen.
From a h
They hold a bit of debt remember. Not sure how much but a look at the last statutory aco****s should tell you. There new investments have also been debt funded so what ever debt taht had at the last stats has now increased.Quote:
quote:Originally posted by rmbbrave All of these investment add up to $1.47 billion but IFT's market cap is $822 million.
Is it fair to say IFT's SP is about half what it should be?
Interesting this as IFT is essentually double levered. Take TPW, one of its main investments. It has say 50% equity, 50% debt. IFT then buys that for 50:50 equity debt. That means there investment in the assets of TPW have 25% equity, 75% debt. So as long as it keeps picking winners, this explains why it has had a good return. Just like increasing your leverage in your house in a rising market.
been doing some reading
this share i like certainly... :D
along with PPL , i tink they will be soon the only NZL shares i will hold... along with NZO that is.
does IFT have a DRIP scheme?
and whats its LT divi %?
regards,
Dazza
been on the ASX boards too much -_-
I must start of by apologising. If my typo in my message above offended anyone, well ...Quote:
quote:Originally posted by Dazza
[does IFT have a DRIP scheme?
and whats its LT divi %?
As far as I know, IFT does not have a DRiP. There dayout ration has to date been pretty reliant on TPW as they will only pay a dividend if it is tax efficent (ie. has imputation credits) which means it has to be income from an NZ investment. It dont think wellington airport pays a dividend (to piss of wellington council and to pay for upgrades). Stagecoach may be able to pay an imputed dividend, but Statecoach has said that since it has held the NZ assets, it has never paid a dividend overseas (due to capital purcahses??). IRG says a gross div ratio of 4.2%.
Triple leverage if you buy the warrnats.Quote:
quote:Originally posted by CJ
They hold a bit of debt remember. Not sure how much but a look at the last statutory aco****s should tell you. There new investments have also been debt funded so what ever debt taht had at the last stats has now increased.Quote:
quote:Originally posted by rmbbrave All of these investment add up to $1.47 billion but IFT's market cap is $822 million.
Is it fair to say IFT's SP is about half what it should be?
Interesting this as IFT is essentually double levered. Take TPW, one of its main investments. It has say 50% equity, 50% debt. IFT then buys that for 50:50 equity debt. That means there investment in the assets of TPW have 25% equity, 75% debt. So as long as it keeps picking winners, this explains why it has had a good return. Just like increasing your leverage in your house in a rising market.
Forbar calculates NAV at $4.36, so nice discount considering it's one of the best managed and performing companies on the NZX.
The SP has historically traded anywhere inbetween a 5-10% discount to the NAV (which I calculate a little higher than FB).
So the stock looks cheap at the moment.
Do the maths again taking into account the signed off buyback over the next 11 months and your head would spin with the prospect of this share being re-rated by the markets very soon.
I hope so. I am seeing the effect of double and triple leverage as the share price and warrents drop in price.Quote:
quote:Originally posted by Toddy
Do the maths again taking into account the signed off buyback over the next 11 months and your head would spin with the prospect of this share being re-rated by the markets very soon.
It will be interesting to see what it does with its new investments. Two new airports that need a customer base built from scratch - not an easy thing, and a bus company (social infrastructure - a bit like airlines [:0]) which it needs to do something with, though it did buy on a good P/E so growth isn't as important as the other two. I think this brings a lot of uncertainty into the stock compared to the last few years. Glasgow airport still needs work but the other investments can just keep ticking.
The buyback began last Friday at $3.65 a share, the low for that day.
has the difference btw teh headshares and the warrents been around $3?? all the time?
Stagecoach agrees to buy Mana Coach Services
09 January 2006
Stagecoach New Zealand has entered into a conditional agreement to boost its stake in Mana Coach Services.
Stagecoach already owns a 26 per cent holding in Mana, and has now agreed to buy the balance.
The deal is conditional on Commerce Commission approval and completion of due diligence, with settlement expected by April 3.
Mana Coach Services is a family owned and managed business that operates Mana Coach Services and Newlands Buses.
Mana Coach Services operates commuter and passenger bus services within north Wellington, Porirua and the Kapiti coast, as well as a service to the Paraparaumu Tranz Metro rail line for Wellington city connections, and a coach charter business.
Stagecoach executive chairman Ross Martin said if the deal went unconditional, it would be business as usual for Mana and Newlands under existing management and staff.
Infrastructure investor Infratil bought Stagecoach New Zealand in November last year. The Mana purchase would be funded through existing Infratil bank debt facilities.
AdvertisementAdvertisementFor the year ended March 31, Mana Coach Lines expected revenues of about $14 million and earnings before interest, tax, depreciation and amortisation of around $5 million.
Dazza, you are quite right the difference between the Heads & B Warrants has hovered around the $3 mark.
The B warrants currently at $0.75 were around $1 when the SP was around $4.
Both look cheap at the moment IMO
The warrents can be exercised at $3.50 (I think) so any difference in the Warrent price + $3.50 and the share price represents a premium/deficit in relation to the value of the leveraged effect of the warrent. based on your observations, this is about 50c. THe smaller the difference, the higher people expect the shareprice to go.
I'm not sure how much longer the sp will track sideways. IFT Management has been buying up large first class assets (apart from APX???) which will provide significantly increased cashflow for IFT.
Recent news where the sp has not reacted at all.
Share buyback plan implemented
TPW new investments
Purchase of 10% of APX
Purchase 90% Lubeck Airport
Purchase 100% Kent International Airport
Purchase 100% Isite
Purchase 100% Stagecoach NZ
Purchase of Mana Coach Services
And after all of this their debt to equity ratio is still well below the average. All current investments continue to make record profits.
Ryanair continues to carry record number of passangers and has massive growth plans which all looks good for GPIA.
I could go on forever.............
There has
Although some of these recent acquisitions should add to the profit from day one on the other hand other stuff needs several years of funding before a return can be expected.
So short term that probably averages out as neutral to negative.
IFT is a long term thing: That is how the management works.
Here is something different, in todays London papers.
Glasgow has been voted Europes top tourist destination for 2006, the only European City to make the top 10 tourist destinations in travel guidebook Frommer's.
Glasgow Prestwick can look forward to another boomer year.
I thought Stagecoach pulled one out of the hat when they sold the Auckland bus operation to IFT and then significantly increased their stake in Mana.Quote:
quote:Originally posted by Toddy
Purchase of Mana Coach Services
IFT owns stagecoach so the purchase is one by IFT indirectly. I am sure IFT would have secured a non compitition agreement with Stagecoach UK for at least the next 2years if not 5.Quote:
quote:Originally posted by warthog
I thought Stagecoach pulled one out of the hat when they sold the Auckland bus operation to IFT and then significantly increased their stake in Mana.Quote:
quote:Originally posted by Toddy
Purchase of Mana Coach Services
With the expection of Stagecoach, most of these new investments will take some time to see if they will work. The UK airport currently has no customers so they need to build it up from scatch.
Stagecoach was a good purchase for a normal company but IFT will need to see growth in order to maintain its growth. As such, purchases like Mana are good and will see consolidition in the industry.
May have mentioned before that the IFTWB warrants are what I consider a very good long-term investment that will offer superior returns over the ordinary share price in a very sound company, with the following reasoning:
Have a long-term 3.75 years run to exercise
Bought in over last six months at an average price of 79 cents which equates to an exercise price of 429 cents.
So if current SP of 385 cents conservatively appreciates an average 10% p.a. over next 3.75 years then final SP will be 1.43 x 385 = 550 cents. So warrant worth 200 cents.
This equates to an annual return on investment of 28.1% p.a.
Of course would sell out before exercise if warrants run too far ahead of SP based on a similar analysis to above.
DB-agree that warrants appear to be a good method for superior returns-bought earlier this week at 76c
Recall making a quick 50% plus on FTB warrants.
IFT trading patterns broke a ceiling last night, obv up over recent trading sessions, its looking good for a period of growth in the SP.
Can one of you techies out there please confirm.
Amen and preaching to the converted as far as I'm concerned. Couple of other thoughts to add, if SP grows at the long term historic average of 20% then future share price of $7.65, warrants of $4.15!!!! - I believe this is to be a realistic outcome.Quote:
quote:Originally posted by Dough Boy
May have mentioned before that the IFTWB warrants are what I consider a very good long-term investment that will offer superior returns over the ordinary share price in a very sound company, with the following reasoning:
Have a long-term 3.75 years run to exercise
Bought in over last six months at an average price of 79 cents which equates to an exercise price of 429 cents.
So if current SP of 385 cents conservatively appreciates an average 10% p.a. over next 3.75 years then final SP will be 1.43 x 385 = 550 cents. So warrant worth 200 cents.
This equates to an annual return on investment of 28.1% p.a.
Of course would sell out before exercise if warrants run too far ahead of SP based on a similar analysis to above.
Other comment is that last NAV of underlying investments was somewhere around 4.30-4.50, this stock should be trading at a premium not a discount!!
disc - happy holder from back when they floated and loaded to the gunnels with IFT warrants.
Toddy,
IFT remains in a steady uptrend. There is a confirmed trendline in place and current price action is well above this trendline. On Balance Volume is in an uptrend. The resistance that has held since last October has been breached. Boring eh?
When stocks are in a long-term uptrend like this, TA can be used to signal good entry points. Here are two oscillators with their attendant "Buy" signals marked by arrows. I should point out that both oscillators are plotted using their default values. Optimization of their time periods yields even better results.
http://h1.ripway.com/Phaedrus/IFT112001.gif
Cheers Phaedrus
Yes, very boring looking at an uptrending chart unless ofcourse you are heavily invested.
After a quiet period over recent months everything is pointing towards a new trading range for IFT. And the premium on the warrants has come right back over the past 6 months making them exceptional value at these levels.
B Warrants, definitely B Warrants!
Toddy, IFT along with GPG appear to be the steady but not spectacular performers with enough overseas exposure to counteract any down turn in the NZ economy.
I sold out of the heads a wee while back but hold the warrants and see these as a long term hold.
Nice graph though & suggests heads >$4 & warrants back towards $1 in the near future.
My only question with IFT is there stake in APX, i dont get that "play".
Is this an isolated short term play by IFT?
The APX play. A question that can only be answered in the future.
Same Chairman.
Maybe Cardiff is the real thing.
No one is sure, there were better options out there for IFT if they wanted exposure to oil and gas.
Based on todays market I would no put my money on IFT exercising its options to buy more APX at $5 per share. If they end up exercising then I will eat my hat.
my only concern with the warrents is yhe effect of dividends. if they increase the pay out rate (which they could with increased IC coming from stagecoach) the value of the warrent is effected.
what if they pay a special div etc.
CJ have a look at IFTIZA if you are concerned about dividends. Exercise price of the warrants is $2 and they reset in Sept 06 as I recall.
Disc: Hold IFT, IFTWB and IFTIZA
If they reset in Sept 06, too short time frame => too much riskQuote:
quote:Originally posted by k1w1
CJ have a look at IFTIZA if you are concerned about dividends. Exercise price of the warrants is $2 and they reset in Sept 06 as I recall.
Disc: Hold IFT, IFTWB and IFTIZA
CJ, IFT's stated policy is to pay out div to the extent of available Imputation credits, and yes, stagecoach purchase may lead to higher dividends, ( & have negative implications to warrant holders) but have you ever thought of the implications of share buy back on warrant holders ?? This would surely benefit warrants, and offset the dividend payment to some extent.
There are probably formulas/calculators out there to put a dollar value on the impact of paying a divi & having buyback, on an option/warrant, but calculations are too much for my fragile brain to comprehend at moment. However IFT have seemed to have done both historicaly & I never heard anyone complaining of unfair treatment of heads v warrants.
Agree that buy back is beneficial for warrent holders.
I think no one has complained in past because ther ehas been no major shift. If IFT doubled its div payout following stagecoach, then it could become an issue.
The good thing about the wellington airport investment is that IFT ar being pricks and withholding all dividends since 1/3 would go to the local council.
My preference for investment companies like IFT & GPG is to reinvest cashflow into acquiring more profitable businesses cheaply & increasing the EPS & therefore SP, not the dividend pay out.
For that reason alone a buyback is a better option, as company that pays out too much in dividends is saying that its management cannot find a better use for it!
IFT also has a good chunk of debt & a whole host of bonds which also would be better off being reduced than paying out a dividend.
Why pay interest on debt, whilst returning more cash as dividends is beyond me!
CJ - I personally would like to see IFT buyout the Wellington Council's stake in the Wellington Airport
There is an increased prospect of dividends due to the Stagecoach purchase, especially as it may lead to other bus company purchases.
Increased dividends will benefit IFTIZA holders but not IFTWB holders. Doughboy the reset date in Sept 06 is an option to purchase but these are rolling warrants that reset for a further period based on a new price which includes an interest component. So you can roll them over if you choose to.
Just another way to diversify exposure to IFT.
IFTIZA is very thinly traded. Not sure if there is enuogh liquidity to trade this stock so expect to hold it a while
IFT has been accumulating more stock in Energy Developments Limited since November 05 according to the Australian stock exchange disclosure today. Now over 22% holding.
Good work.
Can anyone from Windy Wellington shed any light on the poor Wellington Airport passenger numbers.
Are the punters starting to tighten their belts in the Capital.
Steady. Focus on investments over the period resulting in a 20% increase in the asset base.
QUARTER: IFT: Infratil Result for 9 Months to 31 December 2005 12:11pm
IFT
08/02/2006
QUARTER
REL: 1211 HRS Infratil Limited
QUARTER: IFT: Infratil Result for 9 Months to 31 December 2005
RESULT FOR THE NINE MONTHS TO 31 DECEMBER 2005
Infratil's quarter to 31 December 2005 was among the most notable in the
Company's history. It saw the acquisition of a major new business, Stagecoach
New Zealand, and the material broadening of the Company's European airport
operation with Kent and Lubeck Airports being added to Glasgow Prestwick.
This resulted in an approximate 20% increase in Infratil's assets and will
provide a sound base for future shareholder returns.
In the short term costs associated with making these investments have
impacted reported results. For the nine months Infratil's Earnings before
Interest, Tax, Depreciation and Amortisation increased 6% to $49.8 million,
however higher start up costs and losses associated with the new
acquisitions, resulted in Operating Profit After Tax and Before Investment
Realisations declining to $13.1 million from $20.2 million in 2004. Last year
there were also investment realisation gains of $22.7 million. This year
realisations added $0.2 million.
Infratil experienced a similar fluctuation in reported returns a few years
ago when it divested from energy distribution and invested the proceeds in to
what was then lower cash earning energy generation and airports. The wisdom
of this swap is apparent. Over the nine months to 31 December 2005 Infratil
received cash distributions from TrustPower and Wellington Airport of $23.8
million and $22.9 million respectively. These investments cost $94 million
and $104 million respectively.
After 31 December 2005 the acquisition of Angaston Power Station in South
Australia was announced. While this is a small increment, it is complementary
with Infratil's investment in the fast growing Australian energy retailer
Victoria Electricity. Infratil has the expertise required to develop a
material Australian energy business and perceives there to be considerable
value in its incremental investment approach.
In making the above noted investments Infratil has assumed further debt, a
mixture of Bond and bank funding. Since 31 March 2005 debt as a percentage of
Infratil's capitalisation has increased from slightly under 24% to just over
40%. This is still conservative given Infratil's assets and the reliability
of its cashflows. Also, none of Infratil Airports Europe, Victoria
Electricity nor Stagecoach has any external debt and both TrustPower and
Wellington Airport have modest levels of debt funding.
Looking forward Infratil expects its core mature investments to continue to
perform well. Considerable effort will be made to build activity and value at
the new investments. Progress at both Kent and Lubeck has surpassed initial
expectations, but it is still going to be a few years before these
investments contribute to reported earnings. Stagecoach is both a mature
investment and an opportunity to add value. Its long term success will be
based on being the lowest cost provider of excellent public transport in New
Zealand. If it can achieve this it will be well placed to expand its
franchise in what is certain to be a strong growth sector.
Released 8 February 2006
End CA:00127127 For:IFT Type:QUARTER Time:2006-02-08:12:11:53
Infratil posts earnings drop as buying spree tolls
08.02.06 2.05pm
By Rachel Pannett
Infrastructure investor Infratil today posted a sharp drop in nine-month profit, as it re-jigged its investment portfolio to include transport company Stagecoach New Zealand and a string of new airport and energy assets.
Infratil said its net after tax profit, before investment realisations, for the nine months to December 31 fell 35 per cent to $13.1 million, from $20.2 million in the same period a year earlier.
Last year's result was buoyed by investment gains of $22.7m, compared with just $200,000 in the current year -- reflecting a change in direction as Infratil embarked on a buying spree.
Infratil bought Stagecoach's bus services and Fullers ferries in November for $253m, including acquisition costs.
In the year to date it also bought Kent International Airport in Britain for $47m, completed a conditional acquisition of 90 per cent of Lubeck Airport in Germany and bought an 11 per cent stake in small oil and gas explorer Austral Pacific for $9m.
After balance date, Infratil purchased Angaston Power Station in South Australia.
Infratil said the acquisitions had expanded its asset base by 20 per cent and put it in fine fettle for making solid shareholder returns in future, despite the short term earnings hit.
Shares in Infratil eased a cent to $3.84 on the news, against a year high of $4.15 and a low of $3.23.
Earnings before interest, tax, depreciation and amortisation rose by 6 per cent to $49.8m during the period.
Infratil said it experienced a similar fluctuation in reported returns a few years ago when it divested from energy distribution and invested the proceeds in to what was then lower cash earning energy generation and airports.
That strategy appeared to have paid off, with Infratil receiving cash distributions from TrustPower and Wellington Airport of $23.8m and $22.9m respectively for the nine month period.
Infratil's other investments include a 66 per cent stake in Wellington Airport, full ownership of the Glasgow Prestwick Airport in Scotland, an 88 per cent stake in Victoria Electricity and a 35 per cent holding in TrustPower.
Debt levels increased from 24 per cent of market capitalisation as at March 31 to 40 per cent, although this was still conservative gearing, Infratil said.
Looking ahead, Infratil expected its mature investments to continue to perform well, and considerable effort would be made to build activity at its new investments.
Progress at Kent and Lubeck had "surpassed initial expectations" but it would be a few years before the pair contributed to earnings.
Stagecoach was a mature business and Infratil has previously said it would be earnings positive in the year to March 2007.
Refering to the previous post:
With no disrespect to either Rachel Pannett, or indeed our very own rmbbrave, but if it seems that that R. Pannett, who presumably actually gets paid for this sort of thing, actually expended less effort in re-writing the Infratil announcement than rmbb did in copy and pasting it to this site.
However she probably earns her pay packet for such sensational bits as the headine "Infratil posts earnings drop as buying spree tolls" and the words "Shares in Infratil eased a cent to $3.84 on the news".
Disc: hold IFT, am not a fan of the Stagecoach purchase and am absolutely gutted that the share price has "eased a cent".
Disc2: just being me :D
Have gone back a few pages and you have never elaborated why? I admit I am not convinced either. I assume they are looking for consoldiation and growth in the industry but have not seen much evidence of consolidation, though it is only early days.Quote:
quote:Originally posted by Paper Tiger
am not a fan of the Stagecoach purchase and am absolutely gutted that the share price has "eased a cent".
The results look ok to me. Is it surprising that new investments aren't yeilding yet. This company makes longterm plays.
Big plays in the Airport Utilities here in Europe/UK again today. Luton was sold last year and now we have a possible bid for the BAA assets which include Stanstead, Gatwick and Heathrow(approx £8.3 billion). Glasgow Prestwick is a high value asset for IFT and I would not be surprised if there have been potential investors sniffing around.
Stagecoach. I think that it was a great play by the IFT Management. Synergies to be made with the Mana purchase (even if small)and looking at the bigger picture, Auckland currently has large transport congestion issues (Aucklanders feel free to disagree). All as it takes is for the Council to implement road tolls or a congestion charge similar to the one here in London and Stagecoach will become the best play in IFT's short history overnight.
Yes a poor effort that Ms Pannett. The word she was clearly looking for was "plunged" or perhaps "plummetted". Or as a rewrite she could have said "Investors punished Infratil at the bourse, hammering the price down 1c".Quote:
quote:am absolutely gutted that the share price has "eased a cent".
Must do better at the hyperbole.
Yours
Editor
Poor day share price wise, I notice that a few shares traded at $3.65.
I am interested to see whether there will be a buyback notice...
CJ.
Sorry but I have only just noticed your question from the 8th.
My objection to the Stagecoach Acquisition is two-fold.
Firstly and leastly, I think they paid a few dollars too much given the current earnings.
Secondly, the area of public transport in Auckland and to a lesser degree Wellington is a political minefield. The risks of detrimental, to Stagecoach, interference by one or more of the innumerable bits of local and national government is too great in my opinion.
IFT need something to move the SP along again. Drip feeding airport statistics on a monthly basis about the Wellington domestic passenger numbers is turning out to be a negative exercise.
A good testing result from Austral on Cardiff or the likes should spark the SP back into action.
Share buy back. There has not been any action from IFT on that front for some time and we are 9 months through the financial year.
Stagecoach. PT, IFT love the political game and have a proven track record of being able to talk with Regional and Central Governments with some success.
AA, not sure where you got the PE from, but this is from the NZX website:
Analytics: 21 Feb, 2006
52-week high/low 4.15 / 3.23
Price/Earnings (P/E) 26.8058
Times cover (TC) 1.3140
Earnings per Share (EPS) 0.1380
Dividend yield 4.2356
Net tangible assets (NTA) 2.410
AA
IFT is an Investment Company. Cashing up some POT shares realising p&l under NZ Accounting Standards would render your PE ratio anaylsis redundant.
Agree that monthly figures present a consistent drip, drip, drip of mildly negative news and this could well be affecting the share price in the short term.Quote:
quote:Originally posted by Toddy
IFT need something to move the SP along again. Drip feeding airport statistics on a monthly basis about the Wellington domestic passenger numbers is turning out to be a negative exercise.
A good testing result from Austral on Cardiff or the likes should spark the SP back into action.
Share buy back. There has not been any action from IFT on that front for some time and we are 9 months through the financial year.
Stagecoach. PT, IFT love the political game and have a proven track record of being able to talk with Regional and Central Governments with some success.
IFT bought back 61,500 shares at average $3.65 on 9th December 2005, the SP has not traded that low since, until yesterday. So I am interested to see.
I remain sceptical with regard to the politics of urban public transport.
Want positive news on IFT look at the chart for it's biggest asset TPW
Closing SP today of $6.34
AA - IFT is mainly an assets play, buying loss making airports at firesale prices and taking 3+ years to turn them around will not result in attractive PE's but the wealth creation potential is huge.
This is why I think that Stagecoach will be a winner for IFT. Its not a case of 'if' but 'when' tolls are going to be introduced on the Auckland roading network. Catching a bus to work will then become a more viable option for many people and expect the funding allocation to be increased for Public Transport accordingly.
Tolls needed to unclog Auckland roads
22 February 2006
Tolls will be needed if Auckland's traffic jams are to be cleared in the next 10 years, highway building agency Transit New Zealand said today.
Transit said without any funding from tolls, completion would be significantly delayed.
Also Toddy, the dollar is finally coming down. As petrol goes up, then will start pushing people Stagecoach's way.
At the moment, about $1.46/litre for unleaded, but will be under pressure as/when the dollar continues it's downward slide.
Stagecoach and growth.
'As part of the plan, Auckland's bus fleet will double from 900 to 1800 and the number of trains will increase from 34 to 50.'
Rugby World Cup ignites plans to relieve city's gridlock worries
26.02.06
By Teresa O'Connor
A $600 million plan to double Auckland's public transport capacity has been fast-tracked in a bid to relieve gridlock woes in time for the start of the Rugby World Cup.
As the eyes of the world will be on Auckland in 2011, transport chiefs have decided to accelerate plans originally scheduled for completion in 2016 with projects around rail, buses and park-and-ride facilities.
Funding will come from central government, regional rates and cash reserves. Rates are not planned to increase by more than 5 per cent.
The figures do not include electrification of the rail network, part of a wider 25-year upgrade plan.
The only fresh project is the creation of a shuttle service from Britomart to Kingsland and building a transport hub around Eden Park.
Auckland Regional Holdings - which manages assets of $1.17 billion from the former Infrastructure Auckland - will provide more than $100 million toward the $600 million bill. The Government, meanwhile, has agreed to provide 100 per cent funding to expand the rail network, including double-tracking many lines in time for the tournament.
Essentially the plans revolve around more trains and tracks, improved rail facilities, twice the number of buses, shuttle services and more park-and-ride options.
The ultimate aim is to increase patronage from 52 million passengers a year to 100 million.
As part of the plan, Auckland's bus fleet will double from 900 to 1800 and the number of trains will increase from 34 to 50.
Although Albany has not been confirmed as a Cup venue, more park-and-ride facilities are planned.
The key projects in the $600 million transport plan are completing the North Shore busway by 2009, double-tracking the western railway line by September 2008 and improving capacity at Newmarket station.
Much of the focus will be around Auckland's Eden Park where some of the key matches of the 2011 World Cup will be played. Plans are to increase the frequency of train services into nearby Kingsland station as well as more regular bus services into Mt Eden.
The plans are unlikely to cause any major traffic disruption over the next five years as most will not affect existing public transport services.
Auckland Regional Land Transport Committee chairman Joel Cayford predicted little difficulty in meeting the 2011 deadline.
"Our new goal is to boost those public transport levels in time for the Rugby World Cup to help make it a world-class event.
"Bad traffic congestion would be a poor image for Auckland and New Zealand and leave a lot of overseas visitors very grumpy," he said.
Auckland mayor Dick Hubbard welcomed the moves, saying it was imperative the city had a world-class public transport system by 2011.
"One quarter of the world will be focusing on Auckland during that period. We need to showcase this city and public transport will be part of that. It will also be a fantastic asset for the city afterwards."
Eden Park Trust Board chief executive John Alexander said he was encouraged about what was planned for the event and the area.
376,194 shares bought back by IFT at $3.70 yesterday
Nice to see IFT gaining some traction, maybe on the back of recent rises in TPW and/or the buyback coming into operation at the $3.70 level.
I stand a chance of getting back into the black with my last warrant purchase. :)
Disc: IFT & IFTWB
Agree PT. TPW and POT doing well, Prestwick figures should be good, Wellington figures should be better (based on Auckland domestic figures), positive noise from APX re Cardiff etc. I would expect to see IFT trade in a new range $4.10-20 within days.
Agree with you guys and think that ultimately Stagecoach should be good for IFT- bought their warrants a few mths back and still trying to figure the correlation between Warrants and Head share prices.
Toddy-hope you are right about the share price.
Looking good for Stagecoach. This will get a fair number of Aucklanders back onto public transport.
Tolls of $6 proposed for Auckland Harbour Bridge, $3 to enter city
17.03.06 1.55pm UPDATE
Click on 'more pictures' above for maps showing various proposals
A government report on tackling Auckland's congested roads suggests charging motorists $6 to cross the Harbour Bridge.
The Ministry of Transport report makes a number of suggestions for charging people to drive into the city, including the Harbour Bridge option.
Other proposals are $3 to enter a cordon - essentially the Auckland isthmus - at 15 charging points, or charging motorists $5 a day to enter the central business district.
The maximum daily charge under all the proposals would be $6, and the tolls would apply only between 6am and 10am, Monday to Friday.
Another of the five schemes in the report would involve a $10 a day additional charge on parking on both private and public property.
The report was released today by Transport Minister David Parker, Finance Minister Michael Cullen and Transport Secretary Robin Dunlop.
"It's time to recognise that we cannot pave our way out of traffic," said Mr Dunlop. "These schemes represent a balance between the need to reduce congestion and raise revenue while minimising the social, environmental and economic impacts to Aucklanders."
Mr Parker said: "The government has an open mind and has not taken a position on this. Depending on what comes out of the consultation process, the government may decide to look at the options further or decide to take no further action.
"That is why it is important that Auckland has its say because congestion is a major issue for the city, as it is in most large cities."
A six-week consultation period starts today and ends on 28 April. Submissions can be made to the Ministry of Transport, which will be consulting with local government, business groups, non-government organisations and the public.
The ministry will then report back to ministers on the outcome of the consultation.
So IFT has gone and bought Mana coaches prior to Commerce Commission approval.
I guess CCOM has been so busy throwing it weight around at the power companies and Telecom that IFT has got fed up waiting for them to respond.
I see that Morrison & Co have been appointed by the Super Fund to manage their infrastructure investments - something like $270m allocated to that sector of the Fund already, and obviously heaps more to come as the Fund snowballs. On the surface there is a potential conflict of interest, with Morrisons running IFT, but the Guardians of the Fund will have that bolted down. Nevertheless there must be some ability to put some into IFT, otherwise they would be precluding investment in one of the most potentially lucrative infrastructure vehicles around.
COLIN - major coflict of interest. If they find a great investment, who gets if first - IFT or Superfund.
Where is the announcement. Are they going to be doing direct investment for the superfund (which is there expertise) or just investing in IFT type shares.
CJ
I'm sure that you can work that one out on your own.
It was in the "Daily Business Brief" from "The Independent". I haven't seen it covered anywhere else. I agree that, on the face of it, there would seem to be a major conflict of interest, and I would be interested to see how that has been dealt with - do "Chinese Walls" really work?Quote:
quote:Originally posted by CJ
Where is the announcement.
Guys
From what I have read the deal is that the Fund has the opportunity to invest in investments that Morrison and Co have passed over as not fitting the IFT investment strategy.
When Morrison are looking around they come across a number of opportunities that aren't suited for IFT. This is where the Fund comes in. They are not competing for the same asset.
I'm sure that the Chinese Walls will apply however to cases where the Fund could be used to corner competitors for IFT's advantage.