IFT - Infratil

[RTM]

Probably a bit naughty for IFT to keep the approach a secret. In most investor minds it would be material information and therefore disclosable immediately. The fact is that the market doesn't believe what the Board is saying about IFT being undervalued, otherwise the share price would already have been near the bid price wouldn't it? That this was the situation rests with the Board, who have failed to recognise that shareholder value could have been enhanced by disclosure. I feel sorry for those who sold IFT shares between 18th Oct and yesterday - they have been done a disservice by the Board.

"The Board confirms that it received an initial non-binding, incomplete, indicative and confidential offer from AustralianSuper to acquire IFT via a scheme of arrangement on 18 October 2020 for cash consideration of NZ$4.69 and an in-specie distribution of 0.2210 Trustpower Limited shares. "

They are saying it was confidential.

[KJMLimited]

"The Board confirms that it received an initial non-binding, incomplete, indicative and confidential offer from AustralianSuper to acquire IFT via a scheme of arrangement on 18 October 2020 for cash consideration of NZ$4.69 and an in-specie distribution of 0.2210 Trustpower Limited shares. "

They are saying it was confidential.

That's a good point, however my understanding is that disclosure is the primary obligation of the Board. One for the lawyers and NZX perhaps.

[Jantar]

…..
They are saying it was confidential.

Yet the share price jumped up in mid October, and jumped again in the first two days of this week. Maybe it was only confidential to some people, while others were free to pass on the info.

The whole point of disclosure is to prevent insider trading.

[Ggcc]

Yet the share price jumped up in mid October, and jumped again in the first two days of this week. Maybe it was only confidential to some people, while others were free to pass on the info.

The whole point of disclosure is to prevent insider trading.

Insider trading happens whether we like it or not. Although if you get caught the penalties are huge

[longy]

What will happen will come true for a reason I guess but this is one stock I really hate to be taken from me.

disc: holding/accumulating since 2015

I think IFT would be around $9 to $10 per shares in about 4 to 5 years time. So I would think the offer be at least around $9.

[Bjauck]

Yet the share price jumped up in mid October, and jumped again in the first two days of this week. Maybe it was only confidential to some people, while others were free to pass on the info.

The whole point of disclosure is to prevent insider trading.

Yep.
During the period that it was "confidential" the IFT share price increased by 14.5%. The NZX50 increased by 2.3% during the same period.

[RTM]

Yet the share price jumped up in mid October, and jumped again in the first two days of this week. Maybe it was only confidential to some people, while others were free to pass on the info.

The whole point of disclosure is to prevent insider trading.

But there have been lots of jumps in various share prices for no apparent reason over the last 6 months as the market recovered. I didn't see a lot different with Infratil than some of the others.I also agree with Ggcc's comment:"Insider trading happens whether we like it or not. "

[Bjauck]

...I also agree with Ggcc's comment:"Insider trading happens whether we like it or not. "

Which is why it beggars belief that any approach by a third party should be able to be kept "confidential". Third parties should realise that public companies are duty-bound to disclose every approach.

[Bjauck]

This offer seems like it would actually have been more than a fanciful "testing the waters" approach back in October.

Continuous disclosure rules in Australia

ASX Listing Rule 3.1 imposes an obligation on a listed entity to “immediately” notify the ASX when it becomes aware of any information concerning it which a reasonable person would expect to have material effect on the price or value of the entity’s securities.

[Ogg]

Someone wanting $6000 for a share. $3.5 trillion market cap, lol.