IFT - Infratil

[BRICKS]

BRICKS has never been in IFT and now watching them loose 57 million on AIA don't think he will ever line up to BUY there STOCK..

[deewu]

What's the likelihood of cheaper fuel for the buses and airports if IFT becomes a significant share holder in NZR?

[Toddy]

BRICKS has never been in IFT and now watching them loose 57 million on AIA don't think he will ever line up to BUY there STOCK..

They wrote the investment down in the previous financial year by 80 odd million, so will book a profit this year. They were not the only ones to lose $$$ on the deal that the Labour Govt stopped.



From Tim Brown

The divestment brings Infratil's sales of non-core assets to $220 million in the first half, in addition to $98 million of equity raising that leaves it with a considerable war-chest.

"Some of that we've used to repay debt, some we're using for organic internal growth," said Brown. "There won't be too many surprises. We've had a very active six months and you don't want that pace all the time."

The possible purchase of Shell's New Zealand assets, investment in an Australian power station and potential buying of new buses all figure in Infratil's future.

"The key is making sure the businesses all continue to perform as well as they can," he said.

[BRICKS]

[QUOTE=Toddy;281143]They wrote the investment down in the previous financial year by 80 odd million, so will book a profit this year. They were not the only ones to lose $$$ on the deal that the Labour Govt stopped.

Thanks for telling me IFT they are bigger DILLS for loosing 80 million instead of 57 million
the story is not getting any better.

AND forget about OZ power stations up for sale in NSW that subject is NO walk up start
doubt a KIWI mob would get a look IN..

[GTM 3442]

The refinery has been a good sound asset for holders (including the fuel industry) for years. Fuel retailing is very low margin.

I think the move is interesting in the sense that they are going from an area where they have some expertise (airports) into an area where they have none (fuel and general retailing). I guess you could say the refinery is an infrastructure asset, but a chain of shops?

How about vertical integration ? The Refinery produces the fuel, the "Shell" outlets sell it. Low margin, high volume ? And you can decide where to take your profit - refining or retail.

There seem to be two trends to fuel selling - unattended self-serve sites, and ever-bigger consumer/convenience retail with fuel as "hook" to get you in the door.

[Jay]

If the rumors are correct and IFT NZ Super make a buyout will "Shell" disappear or will there suddenly be a whole heap of New World or such like stations as in Australia where there are stand alone ones (not next to) a Cole's etc ??
Have they/are they lining someone up, cause I cannot see Pak'N'Save being the only one (they have BP fuel)

[Nevl]

If the rumors are correct and IFT NZ Super make a buyout will "Shell" disappear or will there suddenly be a whole heap of New World or such like stations as in Australia where there are stand alone ones (not next to) a Cole's etc ??
Have they/are they lining someone up, cause I cannot see Pak'N'Save being the only one (they have BP fuel)

The news report today suggested that NZ supermarkets were too expensive so there is room for some competition. Could be a market for another supermarket chain based on the service stations

[COLIN]

What's the likelihood of cheaper fuel for the buses and airports if IFT becomes a significant share holder in NZR?

Its out of their hands. The "Refiners Margin" is set by a formula.

[Toddy]

Todays NZ Herald article says it all......


Tim Brown
Infratil's share price slid 7c, or 4.3 per cent, to $1.53 yesterday after announcing it was quitting its airport stake. "It's a little bit of a surprise to me after everyone saying it would be a good thing to do this - now we've done it the share price goes down."


Rob Mercer
He agreed uncertainty over Shell was bearing on the share price and because the purchase price was difficult to determine this could continue.

"It's certainly created a lot of debate as to what the merits are. The market's looking at Infratil with the glass half empty - I think that's a little unreasonable. They have been forward thinking in having a capital structure with very little bank debt."


And the ODT

"Infratil is only interested in the Shell assets if the price is right and it can demonstrate it will add value for shareholders without needing to raise equity."

Infratil was trading at a 30% discount to Forsyth Barr's assessed net asset value of $2.92 a share. Mr Young acknowledged sentiment towards Infratil was more negative than it had been in previous years and the interest towards its involvement in acquiring Shell was "less than enthusiastic".

[Balance]

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.