IFT - Infratil

**Southern Lad** · 04-01-2021, 10:38 AM

IFT has released an announcement to the ASX this morning with an increase in the assessed independent valuation at 31 December 2020 of their 48.1% shareholding in CDC. This shows an increase since 30 September 2020 of c.$500m to a range of NZ$2.164b to NZ$2.478b.

This results in an increase in the Morrison & Co international portfolio annual incentive fee of c.$90m from that accured at 30 September 2020.

**Joshuatree** · 04-01-2021, 12:34 PM

Wow, nice work/reward if you can get it. Total International Annual Incentive Fee is now $147.6 million,!!

**Ggcc** · 04-01-2021, 12:53 PM

Whatever we think the market likes it so far. Only on small turnover though. Au$7.30

**winner69** · 04-01-2021, 02:48 PM

Originally Posted by Joshuatree

Wow, nice work/reward if you can get it. Total International Annual Incentive Fee is now $147.6 million,!!

ACC will not be happy with that

They think the whole incentive thing lacks transparency

But a good lurk for Morrison & Co

**kiora** · 04-01-2021, 06:03 PM

Yes ,a good lurk for Morrison & Co

Why would ACC complain?. IFT investment returns far outperform ACC investment returns.
Maybe they should contract it out to Morrison & Co?

What would the direct cost to IFT if the management was brought in house?
Direct costs & incentives?
I imagine very difficult to procure the right staff and they would require quite an incentive?
Would IFT perform just as well?

Why change the structure if its not broken?
My understanding is incentive fee paid over 3 years?

**Balance** · 05-01-2021, 09:07 AM

Originally Posted by kiora

Yes ,a good lurk for Morrison & Co

Why would ACC complain?. IFT investment returns far outperform ACC investment returns.
Maybe they should contract it out to Morrison & Co?

What would the direct cost to IFT if the management was brought in house?
Direct costs & incentives?
I imagine very difficult to procure the right staff and they would require quite an incentive?
Would IFT perform just as well?

Why change the structure if its not broken?
My understanding is incentive fee paid over 3 years?

Agreed.

Pay for performance rather than the way ACC executives & fund managers are paid - big salaries irrespective of performances.

**kiora** · 06-01-2021, 05:00 AM

Originally Posted by Southern Lad

IFT has released an announcement to the ASX this morning with an increase in the assessed independent valuation at 31 December 2020 of their 48.1% shareholding in CDC. This shows an increase since 30 September 2020 of c.$500m to a range of NZ$2.164b to NZ$2.478b.

This results in an increase in the Morrison & Co international portfolio annual incentive fee of c.$90m from that accured at 30 September 2020.

"Assessed" value now nearly 5X original investment in 2016 of $A420 with plenty of runway ahead.

https://www.nzx.com/announcements/282620

**kiora** · 10-01-2021, 07:42 AM

I have been postulating on a valuation of vodafone NZ shareholding since the renewed interest in CDC & Tilt valuations
What do others suggest?
https://www.nzherald.co.nz/business/...TM7H5F7FS5BGPZ
Vodafone NZ saddled with $1.4 b NZ debt
IFT investment " $400m by issuing new shares, with the balance of its contribution met through its existing debt facilities."
"According to Vodafone Group, the deal was struck at an implied multiple of 7.3 times adjusted March-year earnings before interest, tax, depreciation and amortisation and 16.2 times adjusted operating free cash flow.

It said the New Zealand business had revenue of $1.99b in the year to March 31, adjusted ebitda of $463 million, capital expenditure of $253m and an adjusted operating free cash flow of $210m."
V NZ EBITA $463 NZ m
https://www.marketscreener.com/quote...00/financials/
Spark NZ valued at around 9 x EBITA, capitalized at $9 b NZ

Does this make Vodafone NZ worth around $4.16 b NZ or more?
If it was $2 b NZ for1/2 share, uplift in IFT share $1b NZ, triple the equity IFT invested?

**Waltzingironmansinlgescul** · 14-01-2021, 11:21 AM

Perhaps Mr SNOP will run the numbers if we are lucky.

**Dlownz** · 25-01-2021, 09:33 AM

Infratil bid: AustralianSuper faces competition from new contender - report
https://www.nzherald.co.nz/business/...ectid=12416286
Interesting developments.
Sorry its premium for those that dont have it

**Ggcc** · 25-01-2021, 10:29 AM

Originally Posted by Dlownz

Infratil bid: AustralianSuper faces competition from new contender - report
https://www.nzherald.co.nz/business/...ectid=12416286
Interesting developments.
Sorry its premium for those that dont have it

How much more can be offered to make everyone happy

**Dlownz** · 25-01-2021, 10:54 AM

Originally Posted by Ggcc

How much more can be offered to make everyone happy

I'd say $9.50
But there's still no way the infratil board are letting go of this cash cow. There's hasn't even been a acknowledgement of this morning heralds article. Which to me is probably nzx announcement material.

**Swala** · 25-01-2021, 11:32 AM

Originally Posted by Dlownz

Infratil bid: AustralianSuper faces competition from new contender - report
https://www.nzherald.co.nz/business/...ectid=12416286
Interesting developments.
Sorry its premium for those that dont have it

Could you provide a brief precise of the article if possible?

**winner69** · 25-01-2021, 11:59 AM

Originally Posted by Swala

Could you provide a brief precise of the article if possible?

Speculation of 2 big funds (one being OzSuper) making a joint offer

**Dlownz** · 25-01-2021, 12:09 PM

Or a seperate offer

**ados_nz** · 25-01-2021, 02:00 PM

There's a thread across on HC that has a copy paste of the Australia today articles.

TL;DR 1 = Speculation AustralianSuper, could be about to face competition over its $NZ5.4 billion ($5.1bn) bid for Infratil with talk in the market another fund is preparing a rival offer (IFM or IFM x AustraliaSuper deal).

TL;DR 2 = First round bids for the Tilt Renewables stake were due on Friday January 22 and DataRoom understands that the groups that have put forward offers include AGL Energy and Queensland Investment Corporation through their Powering Australia Renewables Fund (PARF).This is along with Canadian pension fund CDPQ and New Zealand’s Mercury Energy.

**Waltzingironmansinlgescul** · 25-01-2021, 02:16 PM

surprised the Aussi funds havnt bought out the NZ generators bit like a bank take over for the dividends. Suppose they dont like the statue reg's.

**Greekwatchdog** · 25-01-2021, 02:20 PM

They can't as Government owns Majority of sum of these.

**Sir Ten** · 25-01-2021, 03:09 PM

Market not ascribing much probability to this occurring... however, I do wonder whether there's any way of a potential purchaser been able to avoid having to pay Morrison & Co the PV of 5 years of the IFT mandate management fee?

Regardless, I suspect Morrison & Co (and their lawyers) will be re-reading their mandate agreement several times over...