My guess is probably higher given the success of other warrant issues-maybe up to 60 cents.I would prefer 40cents.
Printable View
My guess is probably higher given the success of other warrant issues-maybe up to 60 cents.I would prefer 40cents.
IFTWC
Bidders at 56 cents.
Offers at 70 cents.
This is the only exciting thing happening for me today.
Damn, when I divide my IFTWB holding by 10 the resulting IFTWCs don't seem too much!
Oh well, I'm quite tempted to buy some IFTWCs. Apart from being longer term, what are some advantages to the WCs? Would there be a logical reason to sell WBs to buy WCs?
I sold 50% of my B warrants on Friday, was hoping to buy some C's today, looking too expensive for me at this point. Would prefer to buy back some more B's if they drop a bit more.
Probably many holders haven't got in the post confirmation of their IFTWC holding, so a few more might come on the market later.
Infratil Email Update
12 June 2007
Infratil Email Updates are sent to interested shareholders, analysts, brokers and other parties who have registered their interest on http://www.infratil.com
Wellington Airport May 2007 Traffic Statistics
International passengers grew by 11.4% in May against a decline of seats of 1.8%. Growth to South East Queensland was particularly strong, and Melbourne grew strongly as well, despite an 11% fall in seats on that route. Overall international load factor for the month was 72%, up 8 points on May last year. Domestic passengers fell by 1.0% in May against last year, with seats down 6.6% and a load factor of 73% (69% last year).
In retail, work has commenced on a new landside duty free store for Regency, which opened its airside stores last December. Kia Kaha and the new Oceanic Arts stores have opened, and tenders are underway for new concessions for souvenirs/gifts, news and books and music.
Consultations with airlines may complete in the next few weeks with further exchanges of material and proposals completed in May. The most recent proposal was for a 2.85% increase in landing charges each year for the next five years, with the international departure fee held constant over that period.
http://www.infratil.com/wial_financial_summary.htm
Infratil Airports Europe May 2007 Traffic Statistics
http://www.infratil.com/gpia_financial_summary.htm
Glasgow Prestwick Airport
Glasgow Prestwick handled 216,533 passengers in May 2007 - this represents increases of 6% on April and 4% on the prior year.
The strong showing was helped by a large influx of charter traffic carrying football supporters for the UEFA Cup Final during the month.
Upwards of 20 additional flights carrying more than 5,000 supporters of Espanyol FC passed through Glasgow Prestwick in the space of 24 hours, while many more travelled on existing Ryanair services.
The whole UEFA operation required a great deal of planning, which ultimately paid off as it was a great success in showcasing the event capabilities of Glasgow and the airport. Successful events such as these strengthen Glasgow's prospects of hosting the Commonwealth Games in 2014
Wizz Air and transavia.com services continue to perform well, while domestic routes remain weaker possibly as a result of the Government's APD rise.
Glasgow Prestwick handled 2,571 tonnes of freight during May, a 6% improvement on the same month in 2006.
Kent International Airport
Kent International handled 2,665 tonnes of freight in May, a strong year on year increase of more than 80% and a 20% improvement on April's total.
The airport's summer passenger charter operation, operated by Kent Escapes, began on May 3 and is serving three popular holiday destinations in Spain and Portugal.
Luebeck Airport
Luebeck handled 53,028 passengers during May 2007, a 7% drop on April figures and 17% down on the prior year total.
This is mainly due to an expected reduction in frequency on the Milan, Pisa and Dublin routes operated by Ryanair.
However, Ryanair announced a new service to one of their most popular destinations during the month. Girona (Barcelona) will be served three times a week from L?beck when flights commence on October 30.
My shock at the near halving of the share price from a couple of months ago [:0] has given way to the joy of discovering I now should have twice as many shares :) AND some new warrants [:p].
And to think that I was seriously considering selling out sometime ago [B)].
I recently became a customer of Victoria Electricity and so far have received seperate three copies of the welcome pack. Hopefully we can expect them to improve their operating margins in the future.
IFT is well positioned to take advantage when carbon trading arrives. A joint Aussie/NZ trading system is exactly what we need.
Joining forces on carbon trading
Page 1 of 2 View as a single page 5:00AM Monday June 18, 2007
By Greg Ansley
John Howard has recently announced his intention to introduce carbon trading.
Climate Change
Calculator taken off ministry website
Plea to stop atolls sinking into Pacific
Apec meetings
Apec unlikely to be carbon trading bloc
Fran O'Sullivan: Climate top of Howard list
New Zealand and Australia will work closely together in the development of carbon-trading systems, with the potential to develop a model for similar systems throughout the region.
Pushed by New Zealand and the more recent conversion to climate change by Australian Prime Minister John Howard, emissions trading will also be discussed at September's Asia Pacific Economic Co-operation summit in Sydney.
Wellington has been recognised in Australia as a global leader in climate-change policies, with its carbon-neutral ambitions and its decision to set up a greenhouse gas emissions trading system by the middle of next year.
With the added emphasis of a looming election this year in which the environment has become a central issue, Howard this month accepted the recommendations of an inquiry into climate change and also announced his intention to introduce carbon trading.
Although he has refused to set an emissions-reduction target until after the election, Howard has been moving fast to catch up with Labor's environmental lead.
Both played a prominent role in last week's five-day trade mission led by Clark and Economic Development Minister Trevor Mallard to Melbourne, Brisbane and Sydney.
In Brisbane, Clark and Premier Peter Beattie agreed to accelerate co-operation in several key areas of climate-change science, including the development of clean-burning coal and moves to reduce greenhouse gas emissions by farm animals which comprise 50 per cent of New Zealand's emissions profile.
Important differences remain in transtasman approaches to climate change.
New Zealand has ratified the Kyoto Protocols setting down targets for emissions reduction, while Canberra has steadfastly refused ratification.
Howard's conservative Coalition Government also supports nuclear power as a greenhouse-friendly alternative energy source despite bitter controversy, and believes Australia should work towards its own nuclear industry.
Wellington remains opposed to nuclear energy.
But Canberra - which has also discussed compatible carbon-trading systems with Canada - will now work closely with New Zealand on emissions trading.
"It has been agreed to establish a working group of officials from the two countries to ensure that as each of us moves towards an emissions trading system in our two countries, we achieve as much compatibility and harmonisation as possible, and as much acceptance of common standards as might be possible," Howard said after meeting Clark.
Just out of interest, why do you say this.Quote:
quote:Originally posted by Toddy
IFT is well positioned to take advantage when carbon trading arrives. A joint Aussie/NZ trading system is exactly what we need.
Is it just because Trustpower has a few wind turbines or am I missing something else.
(NZ Bus is upgrading their fleet so I assume they are the low carbon Euro 4 standard??)
Isn't IFT one of the jv companies planning a carbon trading system.
I concur that IFTWC looks too expensive.Quote:
quote:Originally posted by QOH
I sold 50% of my B warrants on Friday, was hoping to buy some C's today, looking too expensive for me at this point.
At current prices (IFT 3.27, IFTWB 1.65, IFTWC .70) it appears to me that the C warrants are not just a little bit expensive; they appear to be trading at far above fair value.
Using the Black-Scholes algorithms, I calculate that IFTWB fair value is around 1.55. IFTWB is trading at around a 5% premium.
The same calculation applied to the C warrants shows a fair value for IFTWC of around 0.40. IFTWC at 0.70 is at a 75% premium.
If I had more IFTWC warrants, I'd be selling while the selling's good.
Just read the annual rep. Lyold Morrison is a man I admire.
Find me another company that lies the cards on the table and tells shareholders it's trying for a 20% return pa.
SLPF say 15% but also say they are conservative/ safety focused.
Just printing off the annual report now. I'm not a happy man as I'm rural delivery. I've send an email asking why the annual report cannot be posted on their internet site as soon as they disclose that it has been sent.
Sold all of my c warrants in the 80's and have been buying b's today at $1.55. Will look at c's in the future when they represent better value.
whos willing to hold onto there INFWC s i wonder how high they will go in short term anyway? any comments would be appreciated
Lakeside, excuse my ignorance, but what is SLPF?
I sold my C warrants yesterday, had a good run out of them. Like Toddy I see better value in the Bs at the moment, would get back into Cs again if the price goes down.
I have a spreadsheet that measures growth compared to risk for NZX and ASX companies I follow. Essentially it shows companies whose price is growing regularly and steadily with the least variation from the growth path.
Today the top three places were filled by IFT -ITFWB and IFTWC. A good sign for the company.
could u purhaps post the graph or give me a link cheers
Sold half today-will look to buy "B" warrants which look good value.Quote:
quote:Originally posted by boysy
whos willing to hold onto there INFWC s i wonder how high they will go in short term anyway? any comments would be appreciated
St laurence Property & Finance Its a property fund on unlisted thet will convert 100 million odd fixed interest notes to shares on Dec 2008. There are quite a few similarities with IFT although they are more property & finance than infrastructure and they are perhaps less developed as an equity investment (and I don't know what they will look like in 2 yrs eg NZX, Unlisted or whatever) and don't have the international investments.Quote:
quote:Originally posted by Caesius
Lakeside, excuse my ignorance, but what is SLPF?
But they have a good leader in Kevin Podmore, have said they must acheive 15% annual return without much risk and are a NZ company going places which is why i mentioned them in this thread as a cf to IFT.
Back to the subject why has the IFT price shot up over the last 6 months - what has changed?
It's still a growth stock, low yield with overseas exposure in a high dollar environment, got great assets.
But it was that when a buy back was going on for $2.
Is it the carbon credits, or the new tax regime or
Kingfish buying? The warrants gave it a kick.
Great company though.
Just read the report - they make big of the CO2 thing and energy is their big asset.
Exiting Port of Tauranga might have helped.
The Govt super cooperation would have done no harm to IFTs assets.
So what is the NTA per share - I couldn't find it.
Will all those warrants limit the price in the future?
How much higher can the price of electricity go?
Wow looks like sharetrader followers have just offloaded their C's
I read Toddy's post from yesterday which caused me to have another look at my spreadsheet and when I plugged the numbers I also came to the same conclusions to jumped ship. Then looking at sharetrader seems that a few others have too.
Lakeside, IFT over time go through surges. Over a long period of time they continue to deliver. Jewel in crown is TPW which they now control and is probably the main reason for their latest run.
Lucky they still have an airport left after terrorist tried to park inside the terminal with explosives strapped to themselves.
All flights have been cancelled, and they expected 35,000 to pass through the airport that day.
Not good.
I don't think it was Prestwick .... planes still landing at Prestwick
Appears to be Glasgow Iinternational operated by BAA
Cool, thanks.
never the less it looks like a bad day on the share market tomorrow for IFT. MacdunkQuote:
quote:Originally posted by winner69
I don't think it was Prestwick .... planes still landing at Prestwick
Appears to be Glasgow Iinternational operated by BAA
Macdunk
Why would the IFT share price suffer tomorrow?. If anything, Prestwick will probably get more air traffic out of yet another failed attack. The great thing about the size and location of GPIA is that the security is easier to manage than the larger airports.
I lived in London recently for eight years. It will be business as usual tomorrow.
Business as normal over here. My guess is that tiger Tiger was packed out on Friday night (ie. where the first bomb was found on thrusday night).Quote:
quote:Originally posted by Toddy
Macdunk
I lived in London recently for eight years. It will be business as usual tomorrow.
is there any particular reason for share price and warrent price falls recently ?
Warrants are always going to move in the general direction of the heads. If s/t is anything to go by, looks like some observers have considered the C warrants got a bit ahead of themselves so may explain that pullback in that particular security.Quote:
quote:Originally posted by boysy
is there any particular reason for share price and warrent price falls recently ?
As to the heads, no big movements there, price drifted back about 10c oiver the last week which is nothing startling. Bit of interest in airport sector comng off the boil after the recent excitement with AIA and MAQ divestments in europe. Terrorist focus in UK airport sector. Other than that not a lot of news which is often the cause of drifting price for any share.
The current SP drift in an interesting one. Maybe a few profit takers after the recent run of gains.
This is how I see the current position of IFT.
NZ buses. Making good progress, new buses for Wellington, more bums on seats as the oil price continues to climb, and making the right noises with local government in Auckland.
Airports. Wellington looks after itself and grows year after year, the retail side is very exciting. International, the brand continues to build and the underlying asset value is there for everyone to see. Cashflow positive which is the main thing.
Trustpower. Spot electricity prices have been lower than last year. I'm not too sure how this will translate into the bottom line as we can only guess the extent of their forward contracts. There is new generation capacity coming on stream and new projects in the pipeline. In theory the TPW SP already has these built into todays price.
Energy Developments. Now that all of their projects are back under control we have seen a good run in the ENE SP over recent weeks. It looks like the market loves the ENE story again.
Infratil Energy Australia. The annual report talks about the forward contract price locked in at A$40 per MWh. This should directly translate into super profits given the entent of the Victorian dry summer.
Debt is locked in for the medium to long term and is at a reasonable level, the high kiwi dollar does not effect daily operations and with the introduction CO2 emissions legislation coming up, the outlook for IFT is 'business as usual' translatng into the goal of 20% PA after tax return for its shareholders.
I will be able to attend my first IFT agm on August 6. Based on previous AGM's it will be relatively low profile.
Boysy, This post is an attempt to put your concern over IFT's current "weakness" into perspective.
You can see from the chart that IFT is in a steady longterm uptrend. This uptrend is so steady that it would be a waste of time trying to trade its secondary trends. In other words, this is a stock to buy and hold longterm, for as long as the uptrend continues. Now, IFT has been rising at around 27%pa for the last few years so your system should be such that it would not have triggered a Sell signal over this period. IFT is a low volatility stock and you certainly don't want to be flicked out of it by a premature Sell signal triggered by an overly sensitive indicator. You need to give the stock room to breath. How much room? Well, if you are using a simple percentage based trailing stop, it would need to be set at 15%. This is the minimum level required to have kept you in IFT for the last 5 years or so. So long as price action is above this, it is business as usual.
In short, you are expressing concern over a completely normal, very routine retracement of only about 9%. I assume that you are a longterm investor in IFT. As such, you can't be worrying over every little flicker of the shareprice and anxiously enquiring as to possible reasons for such movement. So long as price action is above the 15% trailing stop as plotted here, worry not.
http://h1.ripway.com/Phaedrus/IFT74.gif
Phaedrus
I agree, and also follow charting. However, IFT has been hit harder than other stocks over the last six or so trading sessions. I have noted the slide has been on limited volumes, hence the profit takers comment. I am the kind of person though that always has to ask the question 'why'.
cheers thanks for that was just wondering why infratil in particular has taken a bit of a pounding recently
I've just completed my expert analysis on the email update.
Comparing:
Year to date international passenger growth 8% with seats down 3%
with:
Year to date domestic passenger growth -0.7% with seats down 5%
obviously says something about the health of the domestic market, so do Infratil;
"stronger growth [in the domestic market] is unlikely to be seen unless there is a significant change to the make-up of the domestic airline market"
Which begs two questions:
1) What are the significant changes? A new competitor?
2) How significantly will Infratil be affected if there is no change? I.E. how much do they *depend* on domestic traffic and what will happen if the trend continues?
I think that Wellington airport represents about 3-4% of total IFT assets.Not too significant in the scheme of things.
Wellington airport has been frustrating for IFT. It has done well to help IFT to get to were it is today, and still provides good cashflows. However, I don't see it playing a major part in the future growth plans of IFT. They have moved on to larger growth assets.
Is Whenuapai all over? If Dubai Aerospace get their hands on AIA, then it might help them get it off the ground....
Sideshow B
Its not all over. IFT has formed a new company along with the local councils with the long term objective of achieving another international airport for the local Auckland region.
Todays events will help for sure. New Zealanders will more than likely back a New Zealand owned and operated airport.
Apart from that, I think that IFT and WCC continously look at the structure currently in place for WIA. I personally would like to see Wellington floated on the NZX in the near future to extract full value for the IFT shareholders.
What is holding back Whenuapai? My udnerstanding is that it is the Govt, a few locals in the flight path (I am sure the airport was their first), and AIA.
If the AIA takeover goes ahead, I see the probablitiy of Whanuapia getting the green light increased significantly.
What % to float for WIA? 33%. I think I am happy to keep it in house. Listing creates costs and more headaches for management.
Two years still left to go for the B warrants and the premium has all but gone.
Yes Toddy, my IFT B's are the last shares I'd part with at the moment. I had a good run out of the C's and bought back B's.
The first quarter for TPW is a good result given the low spot prices experienced over the period. The good news is that the Tararua Wind Farm expansion has now been completed and came in 'under' budget.
Thursday, 26 July 2007
TrustPower Limited First Quarter Result for the Three Months Ending 30 June
2007
TrustPower's unaudited after tax surplus for the three months to 30 June 2007
was $32.0 million, compared with $26.2 million for the same period last year.
It should be noted that the result for the period includes a reduction in
tax expense of $7.4 million attributable to a reduction to deferred tax
liability arising from the change in the corporate tax rate from 33 per cent
to 30 per cent effective from 1 April 2008. This adjustment to tax expense
should be considered as one-off in nature. Earnings before Interest, Tax,
Depreciation, Amortisation, and adjustments for financial instruments
("EBITDAF") were $51.3 million versus $53.4 million for the prior period, a
decrease of 4.0 per cent.
The reporting of the first quarter's results to 30 June 2007 represents the
Company's first reporting period in its transition to New Zealand equivalents
to International Financial Reporting Standards ("NZIFRS"). As part of this
process TrustPower is required to restate its opening balance sheet as at 1
April 2006 and provide comparative balances calculated under NZIFRS.
As part of the transition to NZIFRS, the Company has reviewed the lives of
its generation assets. It has been determined that the economic lives of a
number of the Company's civil structures should be extended. As a result,
depreciation charges on these assets will be lower than in prior years.
More financial detail in relation to the NZIFRS transition is provided in
TrustPower's quarterly financial report which has been released to the NZX.
The first quarter trading environment was characterised by weak hydro inflows
but also lower than average electricity spot prices. This was in contrast to
the favourable trading conditions experienced by the Company during the first
quarter of the previous year when there were very good hydro inflows as well
as above average wholesale spot prices for a prolonged period.
TrustPower's own generation assets produced 483 GWh for the quarter versus
520 GWh in the prior period (a decrease of 7.0 per cent). While wind
production was higher than the first quarter of the previous year, hydro
generation was well down on long term average. TrustPower's hydro generation
storage catchments have improved significantly during July which together
with purchase contracts the Company has in place, leaves it well positioned
to meet customer demand over the remainder of the winter.
Customer numbers have remained steady at around 219,000. Total electricity
sold to customers in the quarter totalled 1,147 GWh compared with 1,196 GWh
sold in the prior period.
The Company's balance sheet remains strong. The ratio of debt to debt plus
equity was 31.5 per cent as at 30 June 2007 up slightly from 30 per cent at
the same time the previous year.
The 93 MW expansion of the Tararua Wind Farm is close to commissioning with
all turbines now operational. Final project cost is expected to be around
$174 million (including capitalised interest) which is well under budget.
Construction on the 5 MW Waipori hydro enhancement has ceased over winter but
remains on schedule for completion in December 2007.
Provisional resource consent has been received for the 72 MW Wairau hydro
generation scheme, in Marlborough. However, a further process is required to
determine the specific conditions of the consent which are expected to be
advised by the end of 2007. Once conditions have been finalised, subject to
appeal, the Company will be in a better position to assess project economics
and the next steps to be taken in the developme
Mangere move 'pushes Whenuapai case'
5:00AM Monday July 30, 2007
By Wayne Thompson
The ownership debate over the airport at Mangere is welcomed by the group who are pushing to get Whenuapai Air Base open for commercial flights.
Any foreign takeover of the international airport would increase the desire for the monopoly to have some competition, said Waitakere Mayor Bob Harvey.
"We say to the Government: Please give us now Whenuapai."
Mr Harvey said there was a strong case and backing for the Government to allow the Air Force to share the base with civil air services and create a second airport for Auckland.
"We think the Government has worked out it's more economic for them to stay on and sell us half of it."
Mr Harvey said the debate over foreign ownership of Auckland Airport had prompted the spotlight to fall on Whenuapai as a way to keep a "foreign owner honest".
The Defence Force has resisted opening its runways to civil use, saying it does not expect to move all its operations to Ohakea until 2015 at the earliest.
Undeterred, Waitakere City Council is preparing to change its district plan to reserve the 273.6ha base for airport purposes in the future.
The council is a shareholder in NorthWest Auckland Airport Ltd with the North Shore City Council, Rodney District Council and publicly listed infrastructure investor Infratil, the majority owner of Wellington Airport.
Mr Harvey said that shareholding and military use gave certainty Whenuapai would remain in New Zealand ownership.
North Shore Mayor George Wood said there was a "strong silent majority" of North Shore residents who wanted to keep Whenuapai for an airport. Rodney Mayor John Law said global interest in Auckland International Airport showed how important airports were.
Enterprise North Shore chairman Ian Watson said a Whenuapai option was supported because of traffic congestion making it difficult to reach the airport at Mangere.
"We also feel that north of the Harbour Bridge is a tourist and event destination in its own right, so an airport would be a positive for that."
A strong advocate for commercial flights from Whenuapai, North Shore lawyer Derek Dallow, said Whenuapai could become a humbler "Kiwibank" version of Auckland International Airport, serving its local area.
AGM
Is anyone else out there attending the AGM on Monday in Auckland.
Not going to the AGM but they are having two presentations in Wellington area this week. Will go to the Wednesday one.
QOH, where are these Wellington meetings? I've looked on the website but can't find them...
ToddyQuote:
quote:Originally posted by Toddy
Sideshow B
Its not all over. IFT has formed a new company along with the local councils with the long term objective of achieving another international airport for the local Auckland region.
Todays events will help for sure. New Zealanders will more than likely back a New Zealand owned and operated airport.
Apart from that, I think that IFT and WCC continously look at the structure currently in place for WIA. I personally would like to see Wellington floated on the NZX in the near future to extract full value for the IFT shareholders.
What a great idea spinning off the airport as a separate company, would think that concept would be well supported, with IFT retaining a meaningful stake of at least 10%, as well as the WCC.
Only problem i can see is, that there is literally no area of expansion for them, unlike AIA, as they are right next to the sea!
I was holding IFT (Heads & B warrants) when the Whenuapai debate was going on, & would love to see that airfield developed thru a public/private Joint Venture.
Might entice me to buy back into IFT.;)
Wednesday 1st Aug Southwards Otaihanga 5.30pmQuote:
quote:Originally posted by Caesius
QOH, where are these Wellington meetings? I've looked on the website but can't find them...
Thursday 2nd Aug Te Papa 5.30pm
I attended the presentation to shareholders tonight. Was pretty impressed, they talked the talk anyway.They were asked whether they were interested in Akld airport, were pretty cagey in their reply. I got the impression they could be seriously interested.They admitted stagecoach hadn't performed as they would have liked so far. I wanted to ask but didn't, should I buy up big on B warrants at the current price!!. Also discovered the chairman is a cousin of mine, so all good. Plenty of wine flowing too.
I guess more of the same...... 20% p.a return year in year out.
Did they mention anything about Lubeck.
$1.35 for B warrants - getting keener to top up.....
Agreed. I wonder if topping up on B warrants could be a "course-related cost". Hmmmmm
I'm trying to top up as we speak.
Well, Ive been trying to do anything except for watch the share market. Yes, the fishing was good (a benefit of living in the Bay of Plenty).There seems to have been a IFT seller around for about 10 days now. I cannot wait until they are all done and the SP can find some legs again.
Hopefully the agm will do the trick and the tide will turn.
Toddy are you the person who has just come in with a buy of $1.03? I'm beginning to think I'm the only person who has been impressed with the sharemarket presentations this week.
No, if you want to know who I am then just look at the 'warrant holders' in the annual report.
I'm looking forward to heading up to the AGM. I'm not too sure where/how the presentations fit in to the over all picture. One would have thought that any presentations would come after the AGM.
I think they said they try to do about 8 presentations a year around different parts of the country, basically it was just an overview of the various parts of the company, all PR I guess. I think they were surprised how many people were there.
Even better at $1.28.....Quote:
quote:Originally posted by Sideshow Bob
$1.35 for B warrants - getting keener to top up.....
Thanks Sideshow, I thought I missed the boat on these years back and have followed IFT since. I am in IFTHA's since taking out money from the market and consolidating recently, but never found the WB's, and I think they may be a good entry at some later time, they are now on my watch list. Thanks for mentioning these.
Been a IFT shareholder from the start, receiving the odd bond & warrant allocation over the years. I have just increased my warrants holding thru the shareholder plan, which was nice of them.
These Share Purchase Plans have become very popular in recent times...
Or at 1.20...Quote:
Even better at $1.28.....
Can anyone understand the details of today's rights issue.? It says the exercise price of the B and C warrants will be reduced accordingly. Unless the exercise price of the B warrants is hugely reduced, won't they be almost worthless?
Wondering if I made a big mistake topping up my B's.
Key issue terms are as follows:
-1:5 renounceable rights issue all shareholders. The exercise price for each
series of warrants (IFTWB & IFTWC) will adjust downwards in accordance with
the formula in the warrant terms.
Agree, it's a bit unclear. One would assume that the terms are all the same, and they mean for the B holders it is a case of pay $1 now and $1 later (not $1.75) which is 75c "downwards"
What it means is actually what it says. :rolleyes:
Because they are offering some new shares on the cheap (assuming that the recent slide does not continue too far :() which sort of dilutes your existing shares (and thus also warrants) value the exercise price of the warrant will be reduced to compensate for that. If you look at the Warrant Investment Statement you will find the mentioned :confused: formula.
These numbers are illustrative purposes only but fr'instance the B exercise price of $1.75 may become $1.68.
The exercise date will remain the same.
When they doubled the number of shares they halved the exercise price, thing of it has a similar event.
Hope that helps :).
So can anyone tell me the impact on the heads price over the next wee while, assuming the inetrnational markets play the game........also have a read of the CEO's address at the AGM...a smart guy most yawn when the CEO gets up but most want more after this guy.....he claerly thinks the global markets will sh*t themselves therefore present IFT with the oppotunity to buy up large...I agree....I'm sticking my neck out and say have your money of the table by mis September this year ASX will rally to 6600 and then good by.......I'm not a dooms dayer and hate dickheads who continually coime up with the market going to crash....something I've listen to for years, I base my view on a few experts around me, charting fundamentals and my old mate GANN time/price...So there you go
Will this $2 rights issue pull the head shares down further? I think so.
If management feel they need to set the price at a relatively low $2 then I assume that management feel that the current head shares are overpriced and that the market isn't factoring in enough risk? Selling equity cheaply isn't in anyones best interests.
I would have thought IFT could have raised this amount by issuing less new shares at a higher price, like somewhere around the $2.5-$2.80 mark.
Not at all, this is a rights issue not a placement. It always makes sense to offer them at a discount to ensure that their is ample incentive to take up the entitlement. as long as veryone has the opportunity to participate then no one can complain about dilution .
In fact a big issue is companies making rights issues at small discounts to market and not having enough head room for price movements before the issues close.
I'm loving this! People betting on a $0.07 growth in the head SP in more than a year.
Why oh why oh why do I have no more money to buy more warrants?
Does anyone know if the warrants are eligible for the rights issue?
lissica see post by Paper Tiger above. Warrants participate via a reduced exercise price.
Eg if you shove numbers into the formula published on page 10 of the investment statement {New Ex Price = [Current Ex price - Conversion rate * (head price - rights price + div due) ]/[rights ratio +1]} then (eg for the IFTWC warrants) then old price = $4.25; conv rate = 1 for 1 (one share per warrant); head price in week before ex date (say) = $3.20; rights price =$2.00; div = ignore as recently paid one; rights ratio = 1 for 5.
So a $3.20 head price implies a $4.05 warrant exercise price (in June 2012). Similarly a $3.00 head price implies a $4.0833 exercise price.
Which makes some sense to me as the difference (425 less 405 = 20c or 425 less 408.33 =16.33c) is the same as the difference in value of head shares - eg I have 1000 heads @ $3.20 = $3200; then 1:5 rights at $2.00 each = 200 shares for $400 => 1200 shares all up for $3600 giving an average of $3600/1200 = $3.00 each - difference = 20cents per share = same as for warrant exercise price. In similar vein if heads at $3.00 the 1:5 at $2.00 gives average per head of $3400/1200 = $283.33 or 16.33cps diff - same as for warrant exercise price.
When the new shares are partially paid (up to $1) during first year then I'm not sure how formula ought to altered - inclined not to alter actually, as the extra $1 is callable and does not apply to the shares that warrants convert to. Just guessing this last bit.
Thanks nso, I had to read it a few times but it makes sense! Cheers
Ok, I need something explained:
IFT buyers at 2.91, last trade 2.92 - fairly stable. As for the IFTWB's, first buyer is at 1.11.
Now, head SP - excerise price = 2.91 - 1.75 = 1.16 (correct?)
So somehow people are valuing the price of IFT shares lower than the price of IFT shares. The same ones.
Why are there IFT buyers at 2.91 when the IFTWB buyers are valuing IFT at (effectively) 2.86? It's always seemed to me like the warrants trailed the heads, not the other way around.
This confuses me...
Disc: IFTWB
Disc: would be buying a lot more if I had any $$$ too.
Isn't the IFTWB excise price to be reduced after the cash issue?
DISC:Overweighted in IFTWB
Could you elaborate on that?
Yes that's true, but then the warrant holders have got less funds invested so the cost of that money will more than make up for the divvies.
I've observed that the correlation between the heads and the warrants often gets a bit out of kilter which I thinik is just realted to market depth largely.
Mildly Negative news , is the judicial review on the Wellington airport landing charges. Also rights issue may be creating a bit of selling pressure for those needing to find the dosh.
On the other hand an article in papers yestrday about how bad Heathrow airport has become with high charges, lack of investment hindering their ability to operate. Airlines and travellers now avoiding Heathrow like the plague. Is this playing into IFT's long terms plans for Kent?
Hello, 1st time poster.
I was wondering if someone could help me get the NTA backing for IFT - in particular taking into account all warrants.
Last report stated NTA per share of $3.39.
Any help gratefully recieved.
Regards.
Damn. Not last report but from DirectBroking.
If I take the no. shares figure and add the warrants if exercised, then add the NTA to the capital raised by exercising all warrants will that enable me to calculate the diluted NTA?
Apologies for what is probably a dum question but am new to this game.
Regards
That would have most definately been prior to the share split. Also, my figure of $3.10 is probably not correct. I got it from page 26 of the annual report, but there is a note alongside it which has just confused me. So I go to page 91. Divide nett assets by the number of shares and warrants on issue and I get a figure of $3.19. Then we have the issue of the partly paid shares. It's all getting a bit beyond me. It's easy enough to value their listed assets to market, but a lot of their investments are not listed, so I'll just stick to the numbers published in the annual report. Given the current market conditions, the value of their listed assets will also be moving around on a daily basis.
yes, that would be pre-split and their analyst since upgraded a frther 50c
http://www.sharechat.co.nz/features/...e.php/fb001bc4
ShareChat Investor Interview: Infratil's Managing Director Lloyd Morrison
--------------------------------------------------------------------------------
-Jenny Ruth
Infrastructure investor Infratil can proceed to complete its purchase of Alliant Energy New Zealand, which owns 23.8% of TrustPower and 5.1% of Infratil, now that shareholders have approved a series of transactions.
They will see Infratil place its own shares to other investors and increase its stake in TrustPower to 50.5% from 35%.
Infratil is paying about $445 million for Alliant. It has already arranged to sell 14 million of the TrustPower shares to the Tauranga Energy Consumer Trust for $5.90 a share, or $82.6 million, and placed a further 12.35 million TrustPower shares at $7 a share, or $86.45 million.
It also arranged to sell the 11 million Infratil shares it acquired from Alliant and 2.48 million shares of treasury stock through a placement at $5 a share, or $67.4 million. In mid-November, Forsyth Barr analyst Rob Mercer estimated the transactions added $70 million, or 27 cents a share, to Infratil's net asset value, raising his valuation to $5.73 a share compared to the then $4.90 share price. Since then, Infratil's shares have risen as high as $5.30 while TrustPower's shares have risen as high as $7.95.
Sharechat: Given all the value you've added to the company just in the last couple of months, why do Infratil's shares still trade at such a discount to net asset value?
Infratil managing director Lloyd Morrison: If (the stock) it's going to be re-rated, it's something that will happen over time. If you read most of the analysts' reports, they're all still recommending that we trade at a discount. Most of them are saying the discount's lower than it's been for quite a long time and maybe it should be sold off. I think what happens now is we need new investors to look at it and say, actually, we don't agree with that. If they deliver as they have delivered over the last 12 or 13 years, they're clearly beating their cost of capital and they should trade at a more appropriate level which would be at a premium to our NTA. Another thing a lot of analysts haven't looked at is that a lot of our businesses have optionality in them. The valuation of an option isn't based on NTA it's based on its potential upside.
Right - from the 2007 1st quarter results (http://www.infratil.com/downloads/pd...own_160807.pdf) - NTA per share after minority interests is $1.24.
I don't understand then the statement from the post above that Infratil trades at a discount to NTA.
NTA $1.24, Shareprice $2.76.
???
Could IFT put together a deal that would see NZ shareholders maintain control over AIA.
What a smart move getting the 'NZ Super Fund' name all over the AIA share registry.
Manukau to wait on other airport bids
Mayoral candidate Len Brown, who came a close second to Sir Barry in the previous elections, says there is no way Manukau residents would allow their shares to be sold overseas. Rival contenders Arthur Anae and Dick Quax have also indicated their opposition.
But speculation is mounting that locally owned infrastructure company Infratil and the New Zealand Superannuation Fund, which last week declared combined holdings of 6.2 per cent in the airport, may form part of some other bid.
They could team up with a larger buyer, which may even include Dubai, or form a bloc of shares with the 22.8 per cent community stake held by the Manukau and Auckland City Councils to extract a superior offer.
Well, so long as they can top $3.80, fine :D
Given that IFT is a 66% owner of Wellington airport, I wonder if the Commerce Commission might have some thoughts on them taking a significant stake in AIA?
Received a letter from that nice John Maasland ;) yesterday clarifying some of the reporting around the Dubai offer. Seems that you can take the cash at $3.80 per share up to the maximum DAL is seeking (60%), beyond that current holders get cash plus the new script, value unknown.
From my reading of that the best option might be to sell at $3.80.
Placebo
Re your Com Com comment. Govt owned AIR vs Govt NZ Super Fund, vs Regionl Govt owned Wellington Airport and Regional Govt owned Auckland Airport.
For once the Com Com may not have a view at all! But then again, we all know the Labour Govts view on the other proposed Auckland Airport.
Is there any such thing as having your cake and eating it too.
Seems like Air NZ has been reconsidering their opposition to Whenuapai. They are now saying they may support it.
It may just be a threat.
There are some significant logistical obstacles to overcome before a split between AirNZ's domestic and international operations could occur.
So, what is AIR upto. Do they want to be buddies with IFT now.
Air New Zealand plunged 21c, or nearly 9 percent, to 214 on news Virgin Blue will announce details about a new domestic airline on Thursday.
Air NZ taking a more positive look at Whenuapai airport
Air New Zealand has been re-looking at basing some operations at Whenuapai air force base, should the West Auckland airport become available for commercial use.
Air NZ, which along with Auckland International Airport (AIA), originally opposed commercialisation plans of the base, said it has had a team looking at possibilities for Whenuapai over the past couple of months.
"The first stage of the team's work has led the airline to form a more favourable view on the possibilities that Whenuapai may offer our domestic operations in the future," Air NZ spokesman Mike Tod said.
"Our next steps are to investigate the issues around the use of Whenuapai as a dual use domestic airport, including Air New Zealand building and owning its own terminal."
The prospect of using the base was raised in 2002 and three years ago Economic Development Minister Jim Anderton said there was nothing to stop a commercial operator using part of it.
Infrastructure investor Infratil, the majority owner of Wellington International Airport, planned to lease part of the Whenuapai in a joint venture with Waitakere City Council.
However, commercialisation plans were put on ice two years ago when the Defence Force said it would not consider any proposal to lease part of the base for commercial use until nearer 2015, when the air force was scheduled to consolidate operations at Ohakea, in the Manawatu.
Infratil, which this month revealed it had teamed with the NZ Superannuation Fund to take a 6% stake in AIA, planned to invest $50m to upgrade Whenuapai's infrastructure, including a passenger terminal.
Tod did not accept Air NZ had revised its position since it was revealed last month that up to eight parties were reported to be interested in bidding for AIA.
Last month, state-backed Dubai Aerospace Enterprise Ltd (DAE) offered to buy between 51% and 60% of AIA, in a $2.6 billion deal.
Air NZ's relationship with Infratil has been fraught because of Infratil's strong opposition to firstly the airline's plan to ally with Qantas, then its code share arrangement with the Australian airline.
NZPA understands Air NZ had top level talks with Infratil when Air NZ's alliance plan with Qantas was scuttled by regulators.
But the talks were called off when Infratil opposed the code share plan that would have seen flights across the Tasman reduced, particularly from Wellington.
Infratil's Tim Brown said Infratil would have welcomed Air NZ to Whenuapai and had offered it favourable terms. He was unaware of Air NZ's renewed plan.
One difficulty for Air NZ is that it uses AIA as its main hub and its regional dominance comes from feeding off other airlines and its international operations that use that airport.
Even with substantially reduced landing fees, a successful operation out of Whenuapai could dilute its success at AIA.
The Defence Force has opposed joint use of the airport, a position that Infratil has been attempting to modify.
The total rebasing of the air force at Ohakea is seen as a diminishing prospect.
Infratil does not believe the development of Whenuapai will significantly undermine the viability of AIA. It argues a second Auckland airport as attracting different carriers and growing the market.
Whenuapai, which is surrounded by housing, is unlikely to become a major airport as resource consents are likely to restrict operations on night operations.
Infratil upgraded to a 'buy'
By KATE PERRY - The Dominion Post | Tuesday, 21 August 2007
Investment Research has upgraded its recommendation for infrastructure group Infratil from "neutral" to "buy".
A 36c price fall during the past three weeks has pushed Infratil's shares below the research house's target price of $3.37. Together with the NZ Super Fund, Infratil owns a combined stake of 6.2 per cent in takeover target Auckland International Airport. UBS said in a research commentary it did not expect Infratil to launch a takeover bid for the airport, which is the subject of an offer from interests in Dubai.
"Instead we see Infratil as seeking a strategic shareholding and willing to work with any possible acquirers of AIA or the existing management and shareholder base," UBS said.
The research house said there were no major surprises in Infratil's recent result, apart from an earnings loss from its Australian energy business, Infratil Energy Australia, attributed to high wholesale prices. More than half of the loss related to costs from growing customer numbers.
It always seem to me that when market sentiment dips, Infratil is hit worse than other big companies. Maybe it's because Infratil is not in the public eye so much as Telecom/Air NZ etc etc.
The possibility of a second Auckland airport is quite exciting.
Hey just checking. Does the rights issue only apply to holders of head shares or do B and C warrant holders get some too????
Has the announcement of the rights issue contributed to the slide in the share price or can it all be attributed to market sentiment???
Oooo where's me old icon gone???? I'll try this one
Heads only.
IFT has gone through a soft patch due to a combination of things, one of which is the capital raising.
There's plenty of scope for improvement in the SP from here.
Would like your opinion, I've got a fair few "B" warrants. I've only just realised they don't participate in the rights issue. Can you see any upside in them at all now? I'm starting to feel pessimistic about their value now. Wondering if I should sell today and just buy heads next week.
QOH
Sit tight. The warrants exercise price will be adjusted for the dilution of the capital raising. The warrants offer good leverage and IFT management are experts at adding value to the company.
The only downside is that you have to be brave in more volitile times like now.