I went to an IFT presentation a week ago.Tim Brown was the presenter.Yes if the price was right IFT would buy it.Not a lot of buyers about.The NZ power companies with the Govt holdings are not buyers.No there would be no fit with Trust Power.
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I went to an IFT presentation a week ago.Tim Brown was the presenter.Yes if the price was right IFT would buy it.Not a lot of buyers about.The NZ power companies with the Govt holdings are not buyers.No there would be no fit with Trust Power.
Good hot point Percy. IFT Merger with Trustpower mentioned
Origin selldown to make Contact with Infratil | afr.com
Contact /Infratil /Trustpower why not. No NZ Govt holding any Contact.
Its CEN not CNE and Contact is not owned by the NZ Govt ok. Good. Where there is smoke there is fire. A good chance and alogical one of a linkage between the 3, classic Infratil move imo. I was hoping some Contact come to me re $4.50 but could be wishful there.
They will no doubt be looking at it - both would look at any large NZ infrastructure play. The questions is whether the price is right and future growth potential. TPW is looking overseas (Oz windfarms) for growth so I dont see why they would be interested in CEN given limited NZ growth options.
Sorry have corrected my post.Trouble is I own neither CEN or IFT.
Tim Brown said they had thought CEN was too dear for them, and had never thought it would come on the market at anywhere near what they would be prepared to pay.
I think they have been very busy "doing the numbers."
Since I wrote the above post, Contact has paid a special dividend of 50c per share. So my equivalent purchase price for that last parcel of shares is now $5. As I write this, the share price is $4.90, so even cheaper!
When purchasing shares I always like to stack up any potential purchase with any alternative that is out there. Genesis Energy is also an electricity gentailer that, like Contact, has natural gas interests. So how do the two stack up?
Dividends are all fully imputed.
Contact Energy Genesis Energy Share Price $4.90 $1.41+31c(Kupe) Projected eps (FY2015) 26.2c 6.4c+2.6c(Kupe) Projected dps (FY2015) 11c+15c=26c 8c+8c=16c Gentailer PE 18.7 22.0 Earnings Yield Gentailer (FY2015) 7.4% (gross) 6.3% (gross) Share Price for 6% yield (fair value) $6.04 $1.48+$0.31 Discount from fair value 19% 4% My Investment Response Buy Hold
This table is behind the reason that I added to my CEN holding today. Most of the extra discount is I believe rated to the uncertainty surrounding Origin's controlling stake. But what a wonderful opportunity that gives for we value investors to top up!
SNOOPY
Cheers Snoopy. Re the overhang from Origin I'm awaiting what i hope is abetter op when /if their CEN shares hit the market at a discount.