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.