IFT - Infratil

[whatsup]

Can anyone name one other good investment IFT has made outside of TPW and POT?

This is a company living on past glories with not much else to show for the millions of management fees and capital raising done in the last few years.

I hope they do not buy Shell NZ.

Watch the sp go into freefall if they buy Shell NZ. Means another excuse to raise more capital from shareholders and bigger management fees for the managers and directors.

My thoughts exactally, how on earth will the IFTWC's be in the money some $4.16 in about 2 years time !!!

[Jaa]

Can anyone name one other good investment IFT has made outside of TPW and POT?

Wellington Airport

[Balance]

Wellington Airport

That is a good investment?

[Toddy]

I hope they do not buy Shell NZ.

Watch the sp go into freefall if they buy Shell NZ. Means another excuse to raise more capital from shareholders and bigger management fees for the managers and directors.

Or the opposite may happen. The Shell assets might be the buy of the decade, and with no capital raising from shareholders on the horizon then north the SP will go.

Balance, these guys do work hard and like all of us, the recession has meant a change in thinking.

Hopefully the outcome will be an opportunity.

[Jaa]

That is a good investment?

Absolutely! Its a license to print money, just ask Air NZ.

[Toddy]

IFT are keen to get the Shell deal out into the public as soon as possible. Management are determined that they are doing the right thing for the SP.

So, I'm going to pick a date. Monday 30 Nov.

Any others?

[Toddy]

From todays interim announcement. 'attractively priced'........



Infratil is also working with the New Zealand Superannuation Fund
to acquire Shell's New Zealand energy distribution and refining assets. If
completed, the transaction would be attractively priced and result in control
of an integrated downstream energy business in a stable market with earnings
growth opportunities.

[macduffy]

An interesting comment from IFT yesterday in explaining the rationale for buying the Shell retail assets:

"..... an opportunity to optimise an integrated downstream NZ energy business by stripping away the costs and complexities associated with a multinational organisation and improving retail sales."

Now I'm not saying that Shell indulge in such practices but it is normal for multinationals to organise their affairs, particularly transfer-pricing arrangements, in such a way that maximum tax is paid in the most favourable jurisdiction and vice versa.

Perhaps it's possible that the retail fuel business can be made to be more profitable than it currently appears.

[Nevl]

An interesting comment from IFT yesterday in explaining the rationale for buying the Shell retail assets:

"..... an opportunity to optimise an integrated downstream NZ energy business by stripping away the costs and complexities associated with a multinational organisation and improving retail sales."

Now I'm not saying that Shell indulge in such practices but it is normal for multinationals to organise their affairs, particularly transfer-pricing arrangements, in such a way that maximum tax is paid in the most favourable jurisdiction and vice versa.

Perhaps it's possible that the retail fuel business can be made to be more profitable than it currently appears.

Also in an organisation the size of Shell there is a disconnect from the head office in the UK. I am sure there is a lot of deadwood and bad practice that has become part of the culture in Shell that a good management team like IFT or GPG could easily weedout and improve. After all just revamping the forecourt payment systems can lead to a saving of 2 or3% of costs.

No I think IFT could be on to a winner and the fact that Mobil is for sale too strengthens their hand.

[beacon]

Or maybe Shell and Mobil see a worsening retail operation that they do not wish to be part of. Maybe they didn't like the Gas station strife stories that were aired around six months ago. IFT think they can do better, just like they did with NZ Bus. The refinery is the good bit, but it looks like the big fish know that and are using that as bait....