IFT - Infratil

[Nevl]

I'm not sure of the numbers either, but they did just sell an airport, so maybe don't need to raise cash.

I think that the superfund may provide the cash and IFT provide the management on a day to day thing. I think it will be a good buy for ift. Good cash flow and steady income. Shame Lubeck never worked out but they got out well with hedged currency exposure so did ok. Looks like IFT is getting ready to go on a bit of a spree.

[CJ]

I think that the superfund may provide the cash and IFT provide the management on a day to day thing. I think it will be a good buy for ift. Good cash flow and steady income. Shame Lubeck never worked out but they got out well with hedged currency exposure so did ok. Looks like IFT is getting ready to go on a bit of a spree.

IFT would have to have some skin in the game (ie 33% say) or else it would just be managed by Morrison & Co.

[Nevl]

IFT would have to have some skin in the game (ie 33% say) or else it would just be managed by Morrison & Co.

with the AIA sale this morning it looks as though they have plenty of cash. Expect to see them get the Shell assets now. Shell has being looking to sell for a long time and they are the only bidder. I think they will get a good deal.

[Toddy]

with the AIA sale this morning it looks as though they have plenty of cash. Expect to see them get the Shell assets now. Shell has being looking to sell for a long time and they are the only bidder. I think they will get a good deal.

The word on the street is that IFT's investment in Shell assets would be around the $600 mil range. With todays AIA cash sale then the general view is that IFT 'WILL NOT' be required to go to its shareholdes for further capital.

So, whats with all of the dumping of the stock.

If they can borrow the funds off the bank or via a bond issue and get the Shell assets cheap i.e they more than cover the cost of capital. Then the deal would/should add value to the SP.

Or is this just a case of good old Kiwi insider trading or the likes.

Can anyone enlighten me..........

[Placebo]

So the question is, what is involved in the Shell assets? Is it just the pumping stations or does it involved the share of the refinery as well? Is there land involved? I'd be interested in a bit more detail...

Interesting move by IFT. They are becoming more of a diversified fund, and seem to be changing direction under Borgoevski, when under Morrison's management they were well and truly focussed on true infrastructure. First a bus system, then flogging off some of their airports, now buying petrol stations.

[Aeneas]

Sorry I cant find where this was but the assets Shell is selling are:

17.1% of NZR
25% of fly buys
Retail network (229 retail outlets, 95 truck stops, auckland and christchurch airport refuelling facilites)

[macduffy]

So the question is, what is involved in the Shell assets? Is it just the pumping stations or does it involved the share of the refinery as well? Is there land involved? I'd be interested in a bit more detail...

Interesting move by IFT. They are becoming more of a diversified fund, and seem to be changing direction under Borgoevski, when under Morrison's management they were well and truly focussed on true infrastructure. First a bus system, then flogging off some of their airports, now buying petrol stations.

I don't see it as a move away from IFT's focus on infrastructure but I guess it depends on how that's defined. After all, they sold their stake in POT some years ago - ports are "true" infrasructure?; the investment in ENE has been for sale for some time and it's only a matter of the right price before that goes; the Lubeck airport transaction was structured to be "redeemed" if growth targets weren't met. All these were done or put in place under previous management as was the NZ Bus purchase.

I just hope that they know enough about the oil industry to make the Shell assets pay off. In theory, they have expertise on the board in that regard. Time will tell.

[Toddy]

So the question is, what is involved in the Shell assets? Is it just the pumping stations or does it involved the share of the refinery as well? Is there land involved? I'd be interested in a bit more detail...

Interesting move by IFT. They are becoming more of a diversified fund, and seem to be changing direction under Borgoevski, when under Morrison's management they were well and truly focussed on true infrastructure. First a bus system, then flogging off some of their airports, now buying petrol stations.

I don't think that they are changing direction. Cleaning up after the boom days more like it. Lloyde is still very much involved from all accounts.

IFT need to sort a few things, they need to bring back the quarterly accounts and stop talking about market trends. Their monthly updates don't mean anything useful as only a magician could translate the numbers into bottom line p&l.

Its time to dump the pin striped suits and get back to basics.

[Placebo]

Sorry I cant find where this was but the assets Shell is selling are:

17.1% of NZR
25% of fly buys
Retail network (229 retail outlets, 95 truck stops, auckland and christchurch airport refuelling facilites)

thanks Aeneas. 25% of fly buys, wow. That's been quite a successful venture. The refinery has been a good sound asset for holders (including the fuel industry) for years. Fuel retailing is very low margin.

I think the move is interesting in the sense that they are going from an area where they have some expertise (airports) into an area where they have none (fuel and general retailing). I guess you could say the refinery is an infrastructure asset, but a chain of shops? what next? A cornerstone stake in WHS?

As for the buses, well it's a stretch. I mean, they own airports, would they take a stake in an airline? Having said that, Warren Buffett has just bought a big train set so why not?

[BRICKS]

BRICKS has never been in IFT and now watching them loose 57 million on AIA don't think he will ever line up to BUY there STOCK..