IFT - Infratil

[Toddy]

for IFT shareholders is the thought of having to front up with another $1 per share soon, for the partly paid shares.
Didn't IFTs shareprice start going down after the share split and got worse after the latest rights issue?
Interested in thoughts of what you consider the best outcome for IFT over the AIA debacle. Do you think IFT will sell their shares to Canadians?

Thats the ironical thing. Lloyd did not actually come out and say it but I suspect that when they announced the capital raising at the AGM, AIA is what they had in mind for the funds. The market then went pear shaped.

I think that IFT's strategy should be to accept the offer (with the understanding that 24.9% is not control and that the offer will more than likey fail the govt test) to show goodwill towards the concept that shareholders own AIA, and not the govt.

IFT have been relatively quiet of late and have recently hired more brains for the team. Also we should not forget that the share buyback programe has been signed off so its only a timing issue of when IFT will start to purchase shares back off the market.

In the mean time, its bread and water for dinner.

[CJ]

This might help IFT a little as index funds come on board and it gets more "reputation" overseas:

http://www.reuters.com/article/rbssF...22796620080310

Has anyone ever looked at the effect of companies entering and leaving indexes? It can be good news for Vector.

[Toddy]

This might help IFT a little as index funds come on board and it gets more "reputation" overseas:

http://www.reuters.com/article/rbssF...22796620080310

Has anyone ever looked at the effect of companies entering and leaving indexes? It can be good news for Vector.

Well spotted CJ. Effective from 1 April.

Infratil Executive, Tim Brown said, “We are delighted to achieve a place in the NZX 10 Index. Over the last 14 years Infratil has been one of the strongest investments on the NZX providing an average return to shareholders of over 20% per annum after tax.

“We are committed to maintaining strong performance into the future and are in the right businesses to achieve this outcome notwithstanding current capital market conditions.”

[macduffy]

This might help IFT a little as index funds come on board and it gets more "reputation" overseas:

http://www.reuters.com/article/rbssF...22796620080310

Has anyone ever looked at the effect of companies entering and leaving indexes? It can be good news for Vector.

Hi CJ

Companies leaving an index usually means less reason for institutions to hold them.
I note Lloyd Morrison welcomes IFT being admitted to the top10.
Care to elaborate on why this ( demotion) may be good for Vector?

[CJ]

Care to elaborate on why this ( demotion) may be good for Vector?

Typo - should read "can't be good for vector"

[macduffy]

Typo - should read "can't be good for vector"

Thanks, CJ.

Thought I was missing something!

[Toddy]

IFT
11/03/2008
TAKEOVER

REL: 1703 HRS Infratil Limited

TAKEOVER: IFT: Auckland International Airport

Infratil has today resolved to vote in favour of the Canadian Pension Plan
Investment Board partial offer for Auckland
Airport and accept the offer for its shares.

This decision follows CPPIB's significant concession to limit its voting
control to 24.9% on all matters and not to remove this restriction without
the prior approval of Auckland Airport shareholders.

Other factors considered, some of which have occurred since the Auckland
Airport board updated its views, include the Government's announcements with
regard to stapled securities, possible changes to airport regulation and the
amendment to the Overseas Investment Act regulations and the further
weakening of world equity markets.

Infratil continues to believe that Auckland Airport is a first class
infrastructure asset, with strong long term growth prospects, which will
benefit from shareholding stability.

[Caesius]

Infratil has today resolved to vote in favour of the Canadian Pension Plan Investment Board partial offer for Auckland
Airport and accept the offer for its shares.

This decision follows CPPIB's significant concession to limit its voting control to 24.9% on all matters and not to remove this restriction without the prior approval of Auckland Airport shareholders.

Other factors considered, some of which have occurred since the Auckland Airport board updated its views, include the Government's announcements with regard to stapled securities, possible changes to airport regulation and the amendment to the Overseas Investment Act regulations and the further weakening of world equity markets.

Infratil continues to believe that Auckland Airport is a first class infrastructure asset, with strong long term growth prospects, which will benefit from shareholding stability.

For further information contact:

Paul Ridley-Smith
04 473 2399
0275 649 707

So they're selling to the Canadians. Or maybe they're confident the Govt will block the sale...

EDIT: Beat me to it Toddy

[CJ]

Interesting. Is Lloyd one of the Directors who recommended rejecting the offer (but sell the shares if accepted).

Does this in effect change his recommendation as Director?

Is this also a public move to try and get more support for the takeover or do they always make announcements like this a few days in advance?

[Toddy]

Zaphod untill they cut fares by at least 50% they will never get the increase in bus patronidge you are dreaming about. As in most places in Auckland I can drive a big V8 car in peak hour in half the time in a bus and only spend half the price of the fare on petrol and be able to go where I want to not where the bus goes to. The common law of business is if you offer a price for a business that is not for sale and they say thank you. You have payed far more than you should have. This is my understanding of what infratil did and interest rates were approximately half what they are now so cost of holding has increased dramatically. Please correct me if my belief is in correct.

Possum
I was wondering if you have had second thoughts about the bus business given that the model has been looking better on a daily basis.

1. Oil prices at record levels.
2. North Shore residents were complaining on Close Up tonight about the 'Park and Ride' car parks being 'full' so they had no where to park. Whow, what a good problem to have.
3. The NZ Herald had an article today about how the Americans are dumping their cars for public transport. Yes, the Americans.

Also, any thoughts on the ferrys.

FULLERS FERRIES: WE'RE CAUGHT IN FUNDING WASH
5 March 2008

JENNY KEOWN

Infratil-owned Fullers Ferries is pushing for more funding from the Auckland Regional Transport Authority for service development.

Chief executive Donald Hudson said ARTA had an "appetite to fund more services".

Hudson said the city's authorities needed to realise his firm was carrying a tenth of the commuter traffic in Auckland.

"We already carry almost as many passengers in Auckland as the rail service, and with the right support we can carry many more."

ARTA planned to spend $113m over the next 10 years on the development of the ferry system but the funding wasn't guaranteed and was subject to approval by the Auckland Regional Council and Land Transport New Zealand.

About $64.9m is set aside for an operating subsidy for Fullers and $48.8m for improvements to infrastructure. By comparison, ARTA intended to pour $2.84 billion into rail and $1.75b into bus.

Of the three main public transport modes in Auckland - bus, ferry and rail - the bus service annually carried 42.9m, 5.24m people travel by train and 4.2m on ferries.

Fullers said it could carry about 18% more people in five years' time, or 718,000 people a year. The company was planning new routes along the East Coast Bays to Takapuna and on to the CBD, a service to the eastern beaches, and another service down the Tamaki River to serve Panmure, Point England and Glendowie.

If these went ahead patronage could jump to 21% or almost a million passengers.

All-weather shore facilities, parking and feeder buses were needed to make better use of the harbour and gulf to battle congestion on the roads, said Hudson.


Source: The Independent Financial Review