IFT - Infratil

[macduffy]

Yes, two good news stories within 24 hours. To put it into context though, they are relatively small investments compared to others such as Trustpower - over a billion dollars - Z Energy and Wellington Airport.

[andysh]

Is good to see them able to put that money to use, instead of me getting it and drinking it...

[silverblizzard888]

Anyone think tomorrows announcement of statements will change much?

[silu]

HALFYR: IFT: Infratil Results for Half Year to 30 September 2013

2013 has been extraordinarily busy. Infratil has divested, invested, and
introduced a new channel for future investment into Australian
infrastructure. It faced some taxing regulatory challenges and threats, and
has been active in hedging and risk management. A new form of share buyback
was announced and then postponed. And the weather played a part with warm
winters in Australia and New Zealand reducing household energy use, while
storms closed Wellington Airport for more time than in any single year since
the 1970s.

The half year was also Infratil's last period with David Newman as Chairman.
David passed away in October; his integrity and long term vision have left an
indelible impression and he will be greatly missed. Mark Tume has been
appointed by the board to be David's successor as Infratil's Chair.

Financial Results / Capital Management

Net parent company surplus for the six months was $230 million (from a $17
million loss in the same period last year). Net consolidated operating cash
flow was $275 million, up from $106 million.

An interim dividend of 3.75 cents per share (from 3.25 cents) is declared.
The increase reflects Infratil's higher cash earnings, sound financial
position and the goal of providing shareholders with growing tangible
returns. The dividend will be paid on 13 December to shareholders on the
register as at 29 November. The dividend reinvestment plan will operate

[Harvey Specter]

The DRiP will be "The price of the DRP shares will be the weighted average price recorded on the NZX over 2 December – 6 December inclusive"

I assume there is no discount.

[silu]

Yes there doesn't seem to be any discount attached to the DRIP. Quickly checked their website for clarification:

The Dividend amount will continue to be taxable as at present. It is anticipated that Infratil’s Dividends will continue to be fully imputed, whether they are received as cash or as Shares.
When a Dividend is declared by Infratil it will be announced if the Plan will be operational (i.e. Infratil can revert to paying only cash Dividends) and if there is to be a discount in the price of the Shares issued.
The price of the Shares issued under the Plan will be the volume weighted average sale price of all Shares which take place through the NZSX market over the 5 trading days after the relevant Record Date.

[silu]

Buyback still going ahead:
Infratil tender offer to buy back up to 24.8 million shares on 5 December 2013

[artemis]

Yes there doesn't seem to be any discount attached to the DRIP. Quickly checked their website for clarification:

The Dividend amount will continue to be taxable as at present. It is anticipated that Infratil’s Dividends will continue to be fully imputed, whether they are received as cash or as Shares. When a Dividend is declared by Infratil it will be announced if the Plan will be operational (i.e. Infratil can revert to paying only cash Dividends) and if there is to be a discount in the price of the Shares issued.
The price of the Shares issued under the Plan will be the volume weighted average sale price of all Shares which take place through the NZSX market over the 5 trading days after the relevant Record Date.

Still could be a discount on the VWAP amount, though. I would be very surprised if there is no discount.

[macduffy]

Still could be a discount on the VWAP amount, though. I would be very surprised if there is no discount.

The way I read it, if they didn't announce a discount when the dividend was declared, then there won't be a discount!

[Harvey Specter]

The way I read it, if they didn't announce a discount when the dividend was declared, then there won't be a discount!

I think he meant a discount to market value (ie. the share price has risen but you 'purchase price' is the VWAP from a few days ago).

On another note:

I am a bit confused about the share buy back. I assume no one would put in a price less than market price so it should in theory go at a premium to market price? ANy opportunity for an arbitrage here? Ie. sell into the offer and buy back on market? I assume the big boys will be looking at this such that any return is nominal.