IFT - Infratil

[Southern Lad]

IFT has released an announcement to the ASX this morning with an increase in the assessed independent valuation at 31 December 2020 of their 48.1% shareholding in CDC. This shows an increase since 30 September 2020 of c.$500m to a range of NZ$2.164b to NZ$2.478b.

This results in an increase in the Morrison & Co international portfolio annual incentive fee of c.$90m from that accured at 30 September 2020.

[Joshuatree]

Wow, nice work/reward if you can get it. Total International Annual Incentive Fee is now $147.6 million,!!

[Ggcc]

Whatever we think the market likes it so far. Only on small turnover though. Au$7.30

[winner69]

Wow, nice work/reward if you can get it. Total International Annual Incentive Fee is now $147.6 million,!!

ACC will not be happy with that

They think the whole incentive thing lacks transparency

But a good lurk for Morrison & Co

[kiora]

Yes ,a good lurk for Morrison & Co

Why would ACC complain?. IFT investment returns far outperform ACC investment returns.
Maybe they should contract it out to Morrison & Co?

What would the direct cost to IFT if the management was brought in house?
Direct costs & incentives?
I imagine very difficult to procure the right staff and they would require quite an incentive?
Would IFT perform just as well?

Why change the structure if its not broken?
My understanding is incentive fee paid over 3 years?

[Balance]

Yes ,a good lurk for Morrison & Co

Why would ACC complain?. IFT investment returns far outperform ACC investment returns.
Maybe they should contract it out to Morrison & Co?

What would the direct cost to IFT if the management was brought in house?
Direct costs & incentives?
I imagine very difficult to procure the right staff and they would require quite an incentive?
Would IFT perform just as well?

Why change the structure if its not broken?
My understanding is incentive fee paid over 3 years?

Agreed.

Pay for performance rather than the way ACC executives & fund managers are paid - big salaries irrespective of performances.

[kiora]

IFT has released an announcement to the ASX this morning with an increase in the assessed independent valuation at 31 December 2020 of their 48.1% shareholding in CDC. This shows an increase since 30 September 2020 of c.$500m to a range of NZ$2.164b to NZ$2.478b.

This results in an increase in the Morrison & Co international portfolio annual incentive fee of c.$90m from that accured at 30 September 2020.

"Assessed" value now nearly 5X original investment in 2016 of $A420 with plenty of runway ahead.

https://www.nzx.com/announcements/282620

[kiora]

I have been postulating on a valuation of vodafone NZ shareholding since the renewed interest in CDC & Tilt valuations
What do others suggest?
https://www.nzherald.co.nz/business/...TM7H5F7FS5BGPZ
Vodafone NZ saddled with $1.4 b NZ debt
IFT investment " $400m by issuing new shares, with the balance of its contribution met through its existing debt facilities."
"According to Vodafone Group, the deal was struck at an implied multiple of 7.3 times adjusted March-year earnings before interest, tax, depreciation and amortisation and 16.2 times adjusted operating free cash flow.

It said the New Zealand business had revenue of $1.99b in the year to March 31, adjusted ebitda of $463 million, capital expenditure of $253m and an adjusted operating free cash flow of $210m."
V NZ EBITA $463 NZ m
https://www.marketscreener.com/quote...00/financials/
Spark NZ valued at around 9 x EBITA, capitalized at $9 b NZ

Does this make Vodafone NZ worth around $4.16 b NZ or more?
If it was $2 b NZ for1/2 share, uplift in IFT share $1b NZ, triple the equity IFT invested?

[Waltzing]

Perhaps Mr SNOP will run the numbers if we are lucky.

[Dlownz]

Infratil bid: AustralianSuper faces competition from new contender - report
https://www.nzherald.co.nz/business/...ectid=12416286
Interesting developments.
Sorry its premium for those that dont have it