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Oh, ok. So the buyback has been deferred. Does this suggest we have found something better to do with the cash?
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To be value accretive over $2.60 ?
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Member
From the perspective of IFT, that goes without saying. $2.60 is a minimum pps in its eyes so by delaying a buy back for "potential transactions", IFT would be implying it has a better use for capital than could be achieved buying itself at $2.60. At least for the amount previously earmarked for the buybacks which was a small part of the ZEL proceeds.
I've heard rumours about IFT looking at a chunk of the recent MET and/or SUM selldowns. They certainly have the cash for it but it doesn't feel right to me. I'm not sure about MET but Quadrant's stake in SUM was circa 30% which doesn't seem large enough for IFT to get excited given the usual model of IFT/HRL staff moving in to the corner offices. How much did MET's parent sell? Happy to be proven wrong as retirement is a key sector to be in.
I've got a feeling this will be related to the greenfield references signalled several times previously by IFT. Maybe a new Oz wind project (I believe Snowton I and II have*been "paid for" by IFT/TPW). IFT is interested in at least two NZ irrigation projects but having not seen any numbers I fail to see how these projects could be worth hundreds of millions both from a cost and shareholder perspective. So there may still be capital remaining from 1/2 irrigation projects...my money is on a big PPP energy project in Oz
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