IFT - Infratil

[CJ]

Scrappy O if was any good why would they want to sell it (Z)

You could argue they bought more as a Private Equity fund. Buy cheap off someone who wants to sell quickly, rebrand and increase sales, then sell. Look at the criticism at the time of purchase - petrol is a low margin/low growth business - which doesn't suit IFT investment ethos.

However, for those wanting a constant dividend stream greater than the bank rate (oldies and kiwisaver funds), then it is a good investment.

Partial float seems reasonable. Would the SuperFund also want to lock in some gains at the same time?

[peat]

I've always thought that Z fits really well into IFT's infrastructural sector position, and while it may be relatively low growth I still view it as having good potential for increasing market share based on the patriotic spend.
The new branding and service quality improvements are excellent from my personal experience.

[macduffy]

I'll be interested to see some market share numbers for Z in due course.

Being an IFT shareholder and a "sometime" FlyBuys cardholder, I bought my fuel at Shell/Z for many years until I discovered that AA membership offers 6c pl discount at BP with a minimum of fuss. So unless I happen to get the occasional more valuable coupon from Countdown, we buy the family fuel for 2 cars from BP. A pity, really, as the service from Z stations is usually superior, in my experience, but money talks!

[Romer]

I'll be interested to see some market share numbers for Z in due course.

Being an IFT shareholder and a "sometime" FlyBuys cardholder, I bought my fuel at Shell/Z for many years until I discovered that AA membership offers 6c pl discount at BP with a minimum of fuss. So unless I happen to get the occasional more valuable coupon from Countdown, we buy the family fuel for 2 cars from BP. A pity, really, as the service from Z stations is usually superior, in my experience, but money talks!

Hey. That's exactly what's happened to my fuel buying habits. - - And I wonder how many thousands more. I wonder what Z is doing to ensure it upholds, or increases market share!!!

[777]

In our area Z is 2c cheaper so ends up the same price as BP after the discount.

[Romer]

In our area Z is 2c cheaper so ends up the same price as BP after the discount.

Oh. I guess that makes good business sense, make your money in Auckland and don't worry about what's happening in the South Island

[777]

Actually today BP is 213.9/litre and Z is 207.9/litre.

[Snow Leopard]

I have just sold the last of my IFT shares, 1800 of which were the oldest shares I still owned in anything. I bought these way back in Jan 05.

Now where to put the proceeds?

Still have some RYM (current longest hold) and some NPT from before the GFC.

Best wishes
Paper Tiger

[andysh]

Good read if anyone is wanting an update on what Infratil might be up to in the future: http://www.infratil.com/assets/Uploa..._april2013.pdf

[kiwitrev]

Does anyone have any idea what sum IFT are likely to realise from the Z float? Currently their 090 bonds
are maturing 2020 at 8.5% coupon totalling $80m. The latest news released by IFT gives no clue of course
how the funds from the Z float would be utilised. It occurs to me one course they may consider is to retire
the 090 bonds and save a heap of interest payments. This is all conjecture and dependent on their capital
requirement for any projects they have targetted. They are currently trying to get a new issue June 2022
bonds off the ground a 8.5% to replace Sept. 2013 maturing(8.%% coupon) so apparently no problem in
going for new issues at lower rates. Makes sense to me. Any other views out there.