IFT - Infratil

**Curly** · 21-06-2023, 12:25 PM

Expecting that SP will quickly rally upwards following closure of share offer on 27/6/23. Any thoughts on degree of scaling on new shares. If I get third of what I applied for I would be happy.

**hey_homes** · 26-06-2023, 08:37 AM

Sorry for being thick, but what are the practical consequences of not participating in the offer? Will it mean the shares I currently hold will be worth less?

**BlackPeter** · 26-06-2023, 08:55 AM

Originally Posted by hey_homes

Sorry for being thick, but what are the practical consequences of not participating in the offer? Will it mean the shares I currently hold will be worth less?

It just means that you own a smaller share of the company, which however should be worth the same amount of money your larger stake was before (assuming they don't waste the capital raised). So - all other things being equal (but they never are), and ignoring the cost of the capital raise, your shares should keep the same value.

Obviously - shares don't like to stay on the same price, they will go up or down or jitter or cycle as they always do.

But this will be dependant on the markets mood after the capital raise as well as on the usual suspects. If Mr. Market thinks it was an amazing idea to raise this capital, than shares might keep rising. If Mr. Market has second thoughts (often happens after capital raises - post CR syndrome), than shares will go down.

It will be however absolutely irrelevant, whether you decide to join the CR or not - unless you are acting on behalf of Morrison (but than you probably would not ask

;

**kiora** · 26-06-2023, 08:55 AM

Originally Posted by hey_homes

Sorry for being thick, but what are the practical consequences of not participating in the offer? Will it mean the shares I currently hold will be worth less?

Consequences of not participating is that your % shareholding of IFT will be lower but your shares will be worth more /share if/when the takeover is earnings accretive over the medium term
https://infratil.com/news/infratil-a...quity-raising/

**hey_homes** · 26-06-2023, 09:18 AM

Thank you both

**warthog** · 26-06-2023, 10:00 AM

Originally Posted by hey_homes

Sorry for being thick, but what are the practical consequences of not participating in the offer? Will it mean the shares I currently hold will be worth less?

Your shareholding as a percentage of overall shares will decrease i.e. you will be diluted.

All things being equal, you should have approximately the same value invested if you do not participate.