IFT - Infratil

[Snow Leopard]

Stagecoach?

Puzzled Tiger

[Snow Leopard]

Stagecoach NZ figures from Stagecoach plc summary report for 2005.
Figures are millions NZ$
<pre id="code">
2005 2004
Turnover 160.6 160.9
Profit* 23.7 29.5
</pre id="code">
*Profit is described as operating profit and is, I believe, pre-tax.
2005 reflects competition from the revamped train service in Auckland, (well that's what the report says).
Stagecoach appeared to be expecting a lesser result 2006 due to trains and the six day strike in Auckland.

I guess it depends upon the price to be paid.

[k1w1]

The difficulty with integrated public transport in Auckland is the myriad of operators. If Infratil can buy up the opposition and create a unified system that can flow to transport hubs and on from there via express buses/trains/ferries on a single unified ticket public transport is going to become much more attractive for traffic jammed Aucklanders.

[rmbbrave]

Infratil to buy Stagecoach NZ business
18 November 2005

Infrastructure investor Infratil has entered into a conditional agreement to buy Stagecoach's New Zealand bus and ferry business.


Infratil did not disclose the purchase price, but said it would make a further announcement no later than November 29.

Stagecoach operates bus services in Auckland and Wellington, with about 365 buses in Wellington and 658 buses in Auckland. Stagecoach also owns Fullers ferries in Auckland.

Earlier this month Infratil indicated it was on the lookout for more acquisitions.

The purchase is the latest in a string of acquisitions by Infratil, which so far this year has bought Kent International Airport for $47 million, completed a conditional acquisition of 90 per cent of Luebeck Airport in Germany and bought an 11 per cent stake in small oil and gas explorer Austral Pacific for $9 million.

Infratil's other investments include a 66 per cent stake in Wellington Airport, full ownership of the Glasgow Prestwick Airport in Scotland, an 88 per cent stake in Victoria Electricity and a 35 per cent holding in TrustPower.

Shares in Infratil were placed in a trading halt ahead of the Stagecoach announcement, which was made after the sharemarket closed today.

Prior to the trading halt, Infratil shares were trading up 1c at $3.68, having ranged between $3.21 and $4.15 over the past 12 months.

[shasta]

Any estimates of the purchase price, at 6 - 8 times profit (Using PT's figures) would have a purchase price of around $140m - 200m, quite a risky punt compared to there other recent investments surely.

[Snow Leopard]

quote:from www.telegraph.co.uk

Stagecoach 'could offload its NZ operations'
By Caroline Muspratt (Filed: 18/11/2005)


Transport group Stagecoach, which runs South West Trains and Megabus, could sell its New Zealand operations after receiving several approaches for the business.


Stagecoach runs South West Trains and Megabus
The company said it was in discussions over a possible sale of the arm to Infratil, an investor in infrastructure and utility assets that is listed on the New Zealand stock exchange.

Stagecoach said it had "received several approaches" for the New Zealand operations though there was no certainty a disposal would take place.

A spokesman for the company said: "We’ve got a duty to consider and approach that we receive."

It is understood the statement was prompted by an announcement by Infratil on the New Zealand stock exchange.

Infratil said in its statement it "has entered into a conditional agreement with Stagecoach plc with respect to acquiring the New Zealand bus and ferry business of Stagecoach plc."

It added: "A further announcement is expected by not later than 29 November 2005."

Stagecoach’s New Zealand operations involve urban bus passenger services in Auckland and Wellington. It also owns Fullers ferries in Auckland.

The group reported sales of £59m and operating profit before goodwill of £8.7m in respect of its New Zealand operations last year.

Whilst NZ news seem to regard this as a done deal, overseas news sources seem to be implying that there is many a slip between cup and lip, so to speak.

[rmbbrave]

Bus line fits with Infratil strategy

19.11.05
By Chris Daniels and NZPA


It does not quite count as a privatisation, but the sale of the formerly local government-owned Stagecoach bus and ferry company is exactly the kind of investment Infratil was set up in the mid-1990s to pursue.

In August, company founder and chief Lloyd Morrison said there seemed to be little scope left for new Infratil investments here, since further infrastructure privatisations were off the political agenda of both major parties. "Although I believe strongly the country would be better off with a change of ownership structures across a lot of areas of infrastructure, I just don't think it will happen," he said.

Infratil yesterday entered into a conditional agreement to buy Stagecoach's New Zealand bus and ferry business for an undisclosed sum.

The philosophy behind the Infratil business is to buy infrastructure assets when they are good value, then turn them around, waiting until the investment matures before deciding whether to sell out - which can be a long time.

Infratil has no staff and its assets are managed by executives at founder Morrison's investment bank Morrison & Co. It takes a strong, active interest in the management and operations of the companies it buys into.

The strategy has generally paid off well. A subscriber to the Infratil shares in its float in March 1994 has received a return of 20 per cent per annum return after tax over the 11 years to March 2005. This includes dividends.

The Stagecoach purchase is the latest in a string of acquisitions by Infratil, which so far this year has bought Kent International Airport for $47 million, completed a conditional acquisition of 90 percent of Lubeck Airport in Germany and bought an 11 percent stake in oil and gas explorer Austral Pacific for $9 million. Other investments include a 66 percent stake in Wellington Airport, full ownership of the Glasgow Prestwick Airport and an 88 percent stake in Victoria Electricity.

[Toddy]

Another trading halt.

[Toddy]

Why not speculate on what the IFT trading halt is for.

Surely they would not ask for another halt before releasing more information about the Stagecoach deal. The market is already aware that a conditional deal has been done.

Maybe investments in
Christchurch Airport
Increase in Wgtn Airport, TPW or Energy Developments.
Another European Airport
Or something along the lines of PPP who are tied up in the Tui Oil field and Hector.

Who knows........... any ideas out there.

[Snow Leopard]

I will assuming that the exercise of warrants is not the reason for this halt. But otherwise I am happy to just wait for the information.