IFT - Infratil

[kiora]

Jenny Ruth has good piece in Businessdesk about the perils of dealing with govt agencies.



Infratil can't have got the memo: beware of doing business with government agencies.

It plans to pay up to $350 million for a majority stake in Pacific Radiology, a company that depends on ACC for 34% of its revenue and on district health boards for another 15%.

https://businessdesk.co.nz/article/o...nment-agencies
Might be psywalled

Ha ha W69

Morison & Co
"

Public Infrastructure Partners I Fund
The first Public Infrastructure Partners (PIP) Fund raised in 2009 focused on availability-based social infrastructure PPP's in New Zealand. Morrison & Co worked with central, regional and local government agencies, to identify partnership opportunities to develop social infrastructure such as educational, healthcare and student accommodation facilities. These investments are typically structured as long-term concession arrangements under which the PIP Fund will finance, build and maintain assets, for a 25-35 year term, before transferring them back to public ownership at the concession conclusion. Fund investments include:

NZ Schools I PPP

NZ Schools II PPP

Melbourne Convention Centre PPP

Bendigo Hospital key health worker accommodation

University of Wollongong Student Accommodation

Auckland Prison PPP



Public Infrastructure Partners II
PIP Fund II was the follow-on fund with similar investment criteria to PIP Fund I. PIP Fund II had a focus on developing availability-based and contemporary social infrastructure working with local, regional and central New Zealand government agencies.

The Fund reached a final close of $115m and was fully invested in 2018:

Pūhoi to Warkworth PPP Road

NZ Schools II PPP

NZ Schools III PPP

Akoranga Student Village

Waikeria Prison PPP


Public Infrastructure Partners III
PIP Fund III is a follow-on fund with similar investment criteria to PIP Fund I and PIP Fund II. PIP Fund III has a focus on developing social infrastructure in New Zealand and Australia.

The Fund reached first close of $100m in January 2018. The Fund's first investment is the Waikeria Prison PPP."

Yes it is paywalled
Did Jenny Ruth discuss the benefits of doing business with govt departments?
I would expect that IFT/Morrison & Co have done a fare bit of due diligence on this

[mondograss]

The risk with dealing with public healthcare in NZ (Aus is a very different model) is not that the govt will pull the contracts or decide to do the work itself, (it simply doesn't have the capacity) rather that they might not want to pay what the service is really worth and any revenue growth from public subsidies is likely to be a lot lower than from private patients. But it would likely give you a stable revenue base. Besides which, there's not that many private providers in NZ, Auckland only has a couple being Auckland Radiology Group and Ascot, so you do have a bit of pricing power. The equipment is ridiculously expensive these days so the barriers to entry are very high unless a large healthcare provider like Southern Cross decides that it want's to get into the game.

[bullfrog]

I don't see it as an issue really. With or without acc or district health board ... people still need the service.

Acc paid.. because work related injuries....it won't stop unless workers stop paying acc levies

Health is more important... people will pay...no other services that can provide you x-ray...utrasound....

Medical Imaging has huge growth potential IMO. With the increased use of MRI and 3D body scans reducing uncertainties and risk, it's a nice move by IFT. It's incredible the imaging that can be produced nowadays when compared with 10 years ago.

"The New Zealand medical imaging services market was valued at $285 million in 2017, and is estimated to reach at $500 million by 2025, registering a CAGR of 7.3% from 2018 to 2025."


https://www.alliedmarketresearch.com...ervices-market

[X-men]

Trading closed to offered price of $7.43...

What happened if the takeover is cancelled?

As I don't really think our office will approve it due to sensitive infratil assets

[Swala]

Trading closed to offered price of $7.43...

What happened if the takeover is cancelled?

As I don't really think our office will approve it due to sensitive infratil assets

I think the takeover is history. At least that whole exercise resulted in the share price rising to a level a little closer to it's true value.
Happy holder for the long term.

[X-men]

Well u never know.... fundies might sel down n buy back. .if the takeover is over...then we will see selling down to$6 ish?

[Swala]

Well u never know.... fundies might sel down n buy back. .if the takeover is over...then we will see selling down to$6 ish?

If that happens, I for one will be buying more!

[LaserEyeKiwi]

Pacific Radiology acquisition goes unconditional:

https://www.nzx.com/announcements/372152

[X-men]

well...takeover is on the drain...back to reality now....

[Balance]

well...takeover is on the drain...back to reality now....

But have the management company not done well from the 'attempted takeover'?

$223m incentive fee even when the company reported an operating loss!