IFT - Infratil

[silu]

Wow up another 11 c in early trading !

Sellers depth looking thin. Unlike the power companies no pull back so far. Very happy as IFT is my biggest holding.

[Mista_Trix]

Sellers depth looking thin. Unlike the power companies no pull back so far. Very happy as IFT is my biggest holding.

Looks like we've got a nice strong up-trend forming

[bull....]

nice run from that 2.20 low

[bunter]

Today: "Infratil today announced completion of the sale of 100% of Lumo Energy (including its generation assets) and Direct Connect to Snowy Hydro Limited for gross proceeds of A$646 million. Infratil expects its net cash proceeds from the sale of its interest to amount to approximately NZ$668 million. The final NZ$ proceeds are dependent on the working capital adjustment, which will be finalised after the completion date, and the NZ$:A$ exchange rate.

Updated Infratil Group Guidance
Infratil advises that its net debt at 30 September 2014 is NZ$354 million,
comprising infrastructure bonds of NZ$989 million, other drawn debt of NZ$111
million, and cash balances held of $746 million, prior to settlement of
outstanding sales costs estimated at NZ$51 million.

As previously advised, Infratil will be assessing the full suite of capital
management alternatives against ongoing opportunities for new investment and
report on any decisions as that assessment is completed. Infratil expects
that it will be in a position to provide a further update on this review no
later than at its half year results announcement scheduled for 11 November
2014."

IFT is holding $1.32 per share in cash.
Suppose they could keep it, distribute it, or buy something with it.

Anyone know what sort of return of capital they could do and still not be over leveraged?

The proceeds of sale above amounts to $1.19 per share. Book value was about 60cps. So presumably they could distribute the difference (also approx 60cps) without being any more leveraged than before the sale.

[bunter]

Up 4c today and looking to go higher.
Maybe investors do read sharetrader after all.

[Hawkeye]

http://www.nbr.co.nz/article/infrati...sale-bd-163244

disc : holding

[bunter]

http://www.nbr.co.nz/article/infrati...sale-bd-163244

disc : holding

Thanks. From IFT's NZX announcement:

	Guidance for FY 15
	original	new
ebitdtaf	545	532.5
i	185	175
da	175	155
ebt	185	202.5

Looks like EBT / pretax earnings (somehow) go UP by 3 cps after this sale.
Midpoint estimates used.

[benjitara]

I still consider the stock under-valued on those projections. may look to scale down once it hits the $3.00-3.10 mark but it really depends where they look to employ funds next...

[Harvey Specter]

but it really depends where they look to employ funds next...

Thats the big question isn't it.

As long as it isn't European airports ....

[Mista_Trix]

Thats the big question isn't it.

As long as it isn't European airports ....

There's still a lot of companies in NZ that could do with their management shake-up / streamline / process driven approach.
Companies here who are failing are not very good at doing it on their own IMHO.

Plenty to choose from and turn around.