IFT - Infratil

[living2]

Author Topic Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 of 20
living2
Member



New Zealand
57 Posts
Posted - 21/12/2006 : 4:53:34 PM
--------------------------------------------------------------------------------

What is your guesstimate for head shares and warrants when they are due to be taken up?
My guestimate:Shares $7.50,warrants$4.00
Disclosure:Bought lots of IFTWB 2 months ago
Nice one,looking good

[Toddy]

I'll be opening the bubbly tonight.

Congratulations to IFT and the management.

[Toddy]

I've read the below passage about 10 times today.

IFTWC..... 'sweet'

Infratil intends to undertake a 1 for 1 share split so that the total number of shares on issue in Infratil doubles and immediately after the share split, a free one for ten pro-rata issue of 5 year equity warrants will be made to all shareholders and existing warrant holders.

Key terms of the new warrants are likely to be:

Exercise price : $4.25 (NB. The warrant issue is post the share split.)

Final maturity : June 2012

[Toddy]

Infratil eyes up Aussie energy sector
By ANDREW JANES - The Dominion Post | Tuesday, 15 May 2007

Infratil said it was eyeing opportunities in the Australian energy sector as it delivered an annual after-tax profit more than four times as big as the year before.


The Wellington-based infrastructure investor posted an after-tax profit of $34.7 million for the year to March 31, compared with $8 million in the March 2006 year.

But the two results were not directly comparable, mainly because Infratil lifted its stake in TrustPower from 35 per cent to 51 per cent during the year.

Infratil's share price closed 30 cents up at $6.45.

Infratil singled out TrustPower and its Australian energy subsidiary Infratil Energy Australia as having lifted performance. TrustPower made a $36.5 million contribution to Infratil's result, compared with $28.6 million the year before.

Commenting on TrustPower's specialisation in renewable energy generation, such as wind and hydro, Infratil managing director Lloyd Morrison said: "I think it (renewables) is a very good place to have a lot of assets."

The British Government's Stern Report, published last year, had created a tipping point that should translate into government policy to favour renewable electricity generation, Mr Morrison said.

"If we are lucky we should have some positive surprises."

Infratil Energy Australia generated earnings before interest, tax, depreciation and amortisation of $9.6 million, compared with a $2.2 million loss the previous year.

IEA increased its gas and electricity retail customers from 77,000 to 186,000 during the year and its generation capacity from 40 to 70 megawatts.

Mr Morrison said Infratil was looking at more generation acquisitions in Australia.

"We hope to have an extra 150MW of generation over there by this time next year."

At some stage in the next five years there would be a larger generation acquisition there, he said.

Infratil also expects to increase its involvement in the Australian energy sector through TrustPower, which is developing a wind farm in South Australia.

"Over time TrustPower will ease its way into Australia," Mr Morrison said. "Certainly we will support that. We see the Snowtown (wind farm) development in Australia as the beginning of more exposure to that market." He expected TrustPower would do well in electricity retailing in Australia.

Wellington Airport, in which Infratil has a 66 per cent stake, posted an ebitda of $49.6 million, up from $47 million the year before. The result reflected increased passenger services and property rental incomes but muted traffic growth.

But Infratil's European airports division reported an ebitda loss of $1.9 million, compared with earnings of $1.4 million the year before, and a net loss of $20 million. "We believe we can turn all three airports (Glasgow Prestwick, Kent and Lubeck) into substantive airports," Mr Morrison said. "I think we are making some progress but it's a long, hard, slow job."

Meanwhile NZ Bus, which Infratil bought in November 2005, made a $21 million earnings contribution to Infratil. NZ Bus owns the Stagecoach bus services in Auckland and Wellington and Fullers Ferries in Auckland.

Infratil director Tim Brown said it was not a particularly successful year in terms of increased patronage. But bus passenger numbers in Auckland had grown in the fourth quarter.

Forsyth Barr research head Rob Mercer said it was a solid result. "We like the assets they own."

Infratil had taken a strategic approach to Australia and now had the confidence to push forward.

"They have got the skill base to (expand in Australia) successfully," Mr Mercer said.

[KJ]

quote:Originally posted by Toddy

I've read the below passage about 10 times today.

IFTWC..... 'sweet'

Infratil intends to undertake a 1 for 1 share split so that the total number of shares on issue in Infratil doubles and immediately after the share split, a free one for ten pro-rata issue of 5 year equity warrants will be made to all shareholders and existing warrant holders.

Key terms of the new warrants are likely to be:

Exercise price : $4.25 (NB. The warrant issue is post the share split.)

Final maturity : June 2012

Very good result for IFT with lots of growth ahead.
Seems to me that the new warrants should be a very good investment given the success of past warrant issues.Still kick myself for selling out of IFTWB too soon.
Hold head shares but will look to buy the new warrants.

[COLIN]

quote:Originally posted by trendy

I have never liked IFT. The management contract with Morrison is not transparent. The IFT Board is effectively filled with Morrison management so is not very independent. What happens if IFT ever needed to renegotiate the management contract...they would end up negotiating with themselves (which is probably what they do now). So what is the management contract with Morrison worth? Maybe IFT could take a lesson from the property trust company structure and put the management contract up for tender. It could be worth a lot to shareholders.

Now the other issue I have with IFT is that they issued warrants with a strike price of $3.50 supposedly for the company to get additional capital for future investments. Yet here they are using capital for the share buy back program. Talk about a money go round. That would be the equivalent of NOG having a share buy back program on the heads and taking the money from the options to fund it. NUTS!

Interesting to go back to some of the earlier posts on this thread, like this one posted exactly two years ago.
Is Trendy still around? Wonder if he would say the same today? (Mind you, I probably wouldn't necessarily like to be reminded of everything I have said on this forum over the years!)
My average purchase price for the IFTWB's, bought soon after they were issued, was about 77c. I see that, on today's figures, the value of my holding has increased by about 380%. There are very few other investments I have made which have beaten that, over the same time frame, so I'll definitely be interested in picking up more than my allocation of IFTWC's.
I have also held IFT heads since about the time the coy was first floated, and they have also done very well, but not as exceptional as the warrants - I particularly like the long-dated nature of these, which is long enough to encompass normal business cycles.

[kura]

quote:Originally posted by COLIN

Interesting to go back to some of the earlier posts on this thread, like this one posted exactly two years ago.
[/quote]

I recall getting criticised for suggesting IFTWB were worth over a dollar at one time, but hey, hindsight is a great thing, is it not ?

[Toddy]

The only grizzle I have is that I sold down 150,000 warrants in February (when the market was being sold off) at an average price of $2.38 to help fund the purchase of our kiwi fruit farm.

Lets talk about the future. IFT management once again sound more positive than ever about the future prospects of the company. They have invested in growth sectors. The new warrants on issue have a better chance of out performing any previous issues as the company has a substantial asset base to grow even faster than ever before.

Maybe its time to sell the house and buy IFT derivatives......

[Toddy]

'Infratil rose 14c to 680 on a higher than normal, $2.8 million turnover. Mr Porter said Infratil might be benefiting from the international sale of airport assets, but its share price was only back to the point it was after its strong result.'

I would have thought that a better reason would have been that 7 June is the record date for the share split and 8 June for the free warrants.

[Toddy]

Everyone holding the heads and B warrants at the close of the market today are entitled to the new C warrant bonus issue on a 1 for 10 basis.

Anyone like to guess what they will trade at on Monday. The B warrants started off in the 40-50 cent range.

My pick, 40 cents per warrant. Purely based on a discounted cost of capital basis.