IFT - Infratil

[Deev8]

quote:Originally posted by Toddy

Macquarie likes the bus business too.

Stagecoach, a U.K. bus and rail operator, jumped 3.7 percent to 111 pence. Macquarie has agreed to buy the company's London bus operation for 263.5 million pounds ($482 million) to expand in the U.K.

But it's interesting that Stagecoach, who after all have a lot of experience in the bus business, would prefer to sell it off to Macquarie.

[kura]

Maquarie has been buying a lot of infrastructure type assets for thier various funds (flavour of month) wouldn't be surprised if they have allready approached IFT about buying some of their assets.

[Snow Leopard]

IFT sits in my long-term (IRD speak 'income') portfolio and at the current moment in time I am torn between between buying more ( because they are down) and selling out completely!
On the one paw you have a resonable div yield and a share buy back most recently at $4.00 (fridays close), hopefully underpinning the price.
On the other paw, I really do not like the purchase of Stagecoach NZ, or to be honest, the stake they took in APX. This is a 'gut' feeling but a Tiger ignores it's internals at it's peril.

Serious opinions on the long term of IFT welcome. Please!

[Toddy]

Tiger

Stagecoach was a great play by IFT. Kiwi's are hurting more than any other developed nation with the high oil prices and the falling New Zealand dollar.
The public transport industry is at the beginning of a major growth cycle as the mum's and dad's of New Zealand think twice about taking the car to work.

As for APX, did not agree with that play myself but gave them the benefit of the doubt due to the Chairman of both Companys being one of the same. Thank goodness its only play money.... for now.

[Deev8]

quote:Originally posted by Toddy

Stagecoach was a great play by IFT.

Stagecoach believe that they got a good deal selling their NZ assets, and Infratil believe that they got a good deal buying them. It's possible that they are both right, and of course exchange rates have a part to play with one company reporting in Pounds and the other in NZ Dollars. However it's more likely that the transaction was a good move for one company and a bad move for the other.

Stagecoach continue to think that they got it right, and now they have sold-off their London bus operation as well.

[Rif-Raf]

Higher oil prices are a negative to their airport activities
and positive for their Stagecoach investment. - Good asset management by IFT.

[D_Pick]

Do Stagecoach buses not run on petrol?

Assume both bus and airline companies are less profitable the higher the price of oil. I'm not convinced that higher oil prices are so fantastic for the Stagecoach NZ bus fleet and bottom line of any bus company. Sure some additional people are going to use the bus instead of alternative transport methods, however on the flipside those lower utilised bus routes and buses will be more costly to run and in some cases make even greater losses than before with oil prices at these levels.

[Zaphod]

quote:Originally posted by D_Pick

Do Stagecoach buses not run on petrol?

Assume both bus and airline companies are less profitable the higher the price of oil. I'm not convinced that higher oil prices are so fantastic for the Stagecoach NZ bus fleet and bottom line of any bus company. Sure some additional people are going to use the bus instead of alternative transport methods, however on the flipside those lower utilised bus routes and buses will be more costly to run and in some cases make even greater losses than before with oil prices at these levels.

Stagecoach buses run on Diesel - a minor point of difference.

While I too am not convinced that higher oil prices are fantastic news for Stagecoach, public transport does provide an 'economy of scale' & environmental benefits that cannot be duplicated with a passenger car.

In fact, we are increasingly seeing not only the price of fuel increase, but other ancillary costs increasing such as parking, registration, cost of repairs etc. These have a flow-on effect to the consumer that hopefully means that patronage on buses will continue to increase, even on lower utilised bus route.

[BRICKS]

WHEN IFT got the bus company did the get the Trolley bus bit as WELL.. [8D]

[Toddy]

For you Bricks. All positive for the Wellington Region. Shame about the ComCom decision on Mana though. The Council was all for the takeover.


25 June 2006
NEW ZEALAND: FUNDING DEAL TO SAVE TROLLEY BUSES
More comfortable, reliable and larger buses to come

“Greater Wellington has reached a deal that could save the trolley buses,” announced Greater Wellington Regional Council Chairman Ian Buchanan today. “Together with Land Transport New Zealand we’ve reached agreement with Stagecoach on a proposed funding package that would see the trolley buses refurbished, overhead lines upgraded, and this unique service continue.”

Ian Buchanan said the only hurdle left was to ensure the Commerce Commission is comfortable that the deal does not breach the Commerce Act.

“The Commerce Commission has signalled they plan to investigate the contract with Stagecoach, who is the sole supplier of trolley buses on these routes. We hope any issues the Commerce Commission have will be resolved quickly.”

Mr Buchanan said the proposed deal came after intense negotiations between Greater Wellington and Land Transport New Zealand with Stagecoach over levels of funding for the upgrade and running of the ageing fleet of sixty buses.

“Greater Wellington has already increased its funding for trolley buses in our long term plan. What we needed was Land Transport New Zealand to agree to funding 50% of the actual cost of operating the trolleys and overhead upgrades, and Stagecoach to agree to fund the capital cost of refurbishing the buses. We now have agreement to all these terms.”

Ian Buchanan said that the proposed deal had been approved in principle by the Board of Land Transport New Zealand. “The Board of Stagecoach’s owner Infratil and the Greater Wellington Regional Council now have to give approval to the proposed deal. I’ve am very hopeful that both will sign off the deal, subject to Commerce Commission approval.”

Mr Buchanan said that if the proposed deal was approved by all parties, the sixty buses would be refurbished and the overhead lines gradually upgraded.

“The refurbished buses will be larger, much more comfortable for commuters, and much more reliable. The buses will have low floor and wheelchair access, more comfortable seating and improved electrical systems meaning fewer delays. The other benefits of keeping trolley buses include no increase to diesel emissions on our main streets, and quieter running. Overseas experience also shows that replacing trolley buses with diesels results in a drop in patronage.”

Mr Buchanan noted that with the trolley bus funding resolved Greater Wellington now has substantive agreement on most major public transport projects including long term contracts for rail and bus services, and the replacement or refurbishment of the region’s passenger rail rolling stock.

“This deal is another step forward in the redevelopment of Wellington’s public transport system. We’re now making real progress, and commuters can look forward to the arrival of much improved buses and trains over the next few years,” said Mr Buchanan.

Mr Buchanan said the planned improvements to the trolley buses included:

More seats and greater capacity. The refurbished buses will have 51 seats (40 in the existing buses) running on three axles (currently two). This means greater capacity on key routes.

More comfortable. The refurbished buses have new interiors and a modern shape. The new interiors will be more comfortable with modern seating, heating and handholds.

More accessible. The refurbished buses will be low floor and wheelchair accessible.

More reliable. Redesigned electrical poles will mean an estimated 50% reduction in ‘dewiring’ incidents. In the event of dewiring a new automatic retriever system will speed up the process of replacing the poles on the wires, and make the process safer for the driver.

The new poles and retrieval system will reduce damage to the overhead wires, reducing maintenance.

Completely redesigned and more accessible power systems on the buses