IFT - Infratil

[kiora]

And then POP. Interesting?

Hope they do not sell out of TILT.
Multi decade pipeline. No price would be enough
Just need to look back at the early days of CDC to get the perspective of what it will be worth in decades to come

[Jaa]

Agree Kiora, the decision to sell Tilt seems strange considering the pipeline of new wind farm development opportunities they have built up. Not sure even double the current price can compensate for that?

[kiora]

If all cars convert to E vehicles electricity supply will need to double to keep up
Where will this electricity come from?
The only sensible solution is renewable energy?
Tilt well positioned
How could IFT replace this elongated pipeline?

[dibble]

Havent looked at the Tilt accounts but if a decent amount of value is bound up in intangibles then that is effectively what they might be flogging. Doesnt mean they cant remain in the sector via e.g. a different more capital efficient vehicle (and possibly build up another tranche of intangible value). Just one possibility.

[kiora]

From IFT website
"Tilt Renewables has 322 operating turbines across 8 wind farms in Australia and New Zealand, with a total installed capacity of 636MW and an additional 336MW under construction. Tilt Renewables also has a significant development pipeline of wind and solar projects, with approvals for more than 2,651MW of installed capacity.

Tilt's management team have extensive wind farm development and operational expertise."
Pipeline increasing MW to 5 x its installed capacity
636 to 3287 MW
Then what would Tilt be worth?
Plus loss of management team that have extensive wind farm development and operational expertise. What value would you put on this?

[kiora]

Around 100% (47-223% )1 year trailing return on these renewable energy companies
https://www.investopedia.com/investi...edium=referral

One needs to be aware of changes in government regulations
https://www.fool.com/investing/2020/...nd-1-to-avoid/

Around 10 % underlying profit /year on these figures for new owners operating it and 20%/year for Tilt if they kept their investment?
https://www.rnz.co.nz/news/business/...-pocket-au455m
Management team is the key to unlocking potential rewards

[Jantar]

If all cars convert to E vehicles electricity supply will need to double to keep up
Where will this electricity come from?....

If all cars, motorcycles and other light vehicles convert to electric that will require an additional 600 MW. I.e. it will exactly replace Tiwai. The issue is the amount that needs to be generated, it is the upgrade in the infrastructure to get that energy to where it is needed for charging.

[Jaa]

If all cars, motorcycles and other light vehicles convert to electric that will require an additional 600 MW. I.e. it will exactly replace Tiwai. The issue is the amount that needs to be generated, it is the upgrade in the infrastructure to get that energy to where it is needed for charging.

A one off cost for a long term competitive advantage. Huge benefit to NZ and our terms of trade if we can reduce our reliance on imported oil.

[Oliver Mander]

Something post-close...

AustralianSuper lobs in $5.73b bid for Infratil

AustralianSuper has lobbed in a $5.73 billion cash and share offer to buy local infrastructure investor Infratil, the brainchild of the late Lloyd Morrison.
Australia’s biggest superannuation fund would leave Infratil’s stake in Trustpower with the existing shareholders, paying $5.79 in cash and distributing 0.2210 Trustpower shares per Infratil share.

[Greekwatchdog]

AustralianSuper makes $5 billion takeover play for Infratil
8 Dec, 2020 06:10 PM
3 minutes to read
Infratil owns half of Vodafone NZ. Photo / 123RF
Infratil owns half of Vodafone NZ. Photo / 123RF
NZ Herald
Australia's largest superannuation fund has made a takeover offer for New Zealand's Infratil at $7.43 a share, valuing the infrastructure investor that owns half of Vodafone NZ at $5.37 billion.


The offer from AustralianSuper works out at a $1.35 per share premium to Infratil's close on the NZX.


The proposal is a non-binding offer by way of a Scheme of Arrangement to acquire all shares in Infratil, with a component covering Infratil's majority holding in Trustpower.


The offer comprises:


• Cash Consideration of $5.79 per share; and
• 0.2210 of a Trustpower share per Infratil share (having a value of NZ$1.64 per Infratil share), which is proposed to be distributed in specie to Infratil shareholders as directly owned shares in Trustpower shortly prior to completing the scheme.


The offer represents a 28.1 per cent premium to Infratil's closing share price on Friday of $5.80.


AustralianSuper said it believed that the proposal, if implemented, would unlock significant value for Infratil shareholders and that it "seeks engagement" with the Infratil board in relation to the proposal.


Representatives of Infratil were not available for comment to the Herald at press time.
AustralianSuper's head of Infrastructure, Nik Kemp, said AustralianSuper, one of the world's largest infrastructure investors with a A$20 billion global portfolio, was attracted to Infratil's high quality portfolio of infrastructure assets in New Zealand and Australia.
"AustralianSuper currently has NZ$1.3 billion invested in New Zealand, reflecting our long-term confidence in this market.


"As a well capitalised and long term investor, we see significant potential to invest in the growth of Infratil's assets over the long term on behalf of AustralianSuper's members, which allows us to provide significant value to Infratil shareholders today," Kemp said in a statement.


"We believe our proposal, if implemented, would deliver an attractive premium for Infratil shareholders," Kemp said.


AustralianSuper will continue to seek engagement with the Board of Infratil to afford
Infratil shareholders the opportunity to assess our proposal in full," Kemp said.


Separately Infratil, which is managed by Morrison and Co, has its stake in NZX-listed Australasian wind farm company, Tilt Renewables, up for review. At today's prices, the Tilt stake is worth more than $1 billion.


Infratil's portfolio comprises a raft of prime New Zealand and Australian infrastructure assets.


It has a 51 per cent shareholding in Trustpower, which owns and operates 22 hydro power stations.


The company last year was part of consortium that bought Vodafone New Zealand for $3.4b.


Infratil's latest half year result showed strong contributions from Vodafone NZ and Canberra-based CDC Data Centres.


Proportionate earnings before interest, tax, depreciation and changes in financial instruments (before incentive fees) of $229.5m in the six months to September.


This was up on the $204.2m in the previous corresponding period.


The results for the period were impacted by portfolio changes including the acquisition of Vodafone NZ in 2019, and the sale of Perth Energy, NZ Bus, and the ANU Student Accommodation business in 2019, among others.


The company has forecasted proportionate ebitdaf for the full year to March 2021 of between $430m and $470m, including an estimated $80m reduction caused by Covid-19 related restrictions, compared with $446m the previous year.


Vodafone's first half ebitda came in at $224.7m, in line with analyst forecasts. Infratil has a 49.9 per cent stake in the telco after acquiring the business in tandem with Brookfield Asset Management in a deal worth $3.4 billion.