IFT - Infratil

[Southern Lad]

This has put the cat among the pidgeon's!

Is this just an opening shot or are their pockets deeper? What value on IFT's assets in today's world where we have asset inflation fueled by falling interest rates? Are their other bidders out there? Is the NZ Super Fund a counter bidder?

AustralianSuper trying to scupper the TLT auction - if they are successful in acquiring IFT it would presumably be required to make an offer for the minority shares in TLT under the Takeovers Code. The commentators suggest there is global chase on clean energy assets - IFT is pretty well placed with TLT, Longroad and Galileo.

How does a IFT shareholder find replacement quality assets?

[Traderx]

Would a takeover mean the end of Morrison and co mgmt of infratil? Killing that fee stream would fairly value accretive for someone that just wanted passive exposure to this asset portfolio (ex TPW)

[Brain]

I have owned this share for 3 years and in that time it has doubled in price. I was looking forward to this company continuing to go from strength to strength. Australian super’s premium doesn’t impress me and I fear I will lose a high performing company from my portfolio for a short term gain.

[ScrappyO]

Completely agree Brain. The offer to me is Meh. I reckon the price of infratil would be another $1.35 in a year or 2 anyway.

[horus1]

I will sell somw and I have a lot. The sale price a has to be north of $10 or I hold the lot for good.

[Oliver Mander]

NZSA quote in the Herald:

@Oliver Mander, chief executive of the New Zealand Shareholders Association, said that if the proposal goes ahead, it would mean another unwelcome delisting from an already thin local market."Like other investors, we are surprised by the offer," Mander said.
"Infratil is attractive both as an infrastructure investment and its exposure to green energy - its holdings in both (US wind and solar power company) Longroad and Tilt.
"Both positions are sought after by investors either as a defensive position or to reflect the current growth in demand for green energy worldwide," Mander said.
"The offer at first glance seems to be complicated by the distribution of Trustpower shares and by Infratil's recently announced review of its holding in Tilt Energy," he said.

"That may mean that further information may be required by retail investors and other shareholders."

[turnip]

How does a IFT shareholder find replacement quality assets?

That is the issue from my point of view: nothing on the NZX would fill the hole left in my portfolio if IFT and TLT were taken over, so any proceeds would have to be reinvested offshore for sure.

[Felonius]

I have owned this share for 3 years and in that time it has doubled in price. I was looking forward to this company continuing to go from strength to strength. Australian super’s premium doesn’t impress me and I fear I will lose a high performing company from my portfolio for a short term gain.

Absolutely agree with you Brain.
I would be very sad to see this wonderful company delisted.

[Ggcc]

I want a better offer as that price will be hit within 3-4 years patiently waiting, or less. I feel $9-10 will start getting me interested

[kiora]

Absolutely agree with the sentiment here
ACC & Fisher funds nearly hold 10 % as far as I can ascertain
Hopefully any takeover will be dead in the water but don't expect this to be the only shot at IFT

Elongated pipeline of return for many years to come that is irreplaceable in my view.
Its not just about the assets its also the IP
They have been very good at looking after all stakeholders along the way
Starting buying these when they first listed in 1994? and have added to all along the way
Its mind boggling how a small amount back then has compounded to where it is now and long may it continue.