IFT - Infratil

[teabag]

With Spark selling off 70% of their tower business,
         https://www.nzx.com/announcements/395197

shouldn't this have a decent impact on Infratil's Vodafone value?

[LaserEyeKiwi]

Vodafone sells tower business for $1.7 Billion.

With its 50% shareholding in Vodafone, Infratil gets $850 million from the sale, and is reinvesting part of that with a 20% stake ($340m) in the new tower business.

https://www.nzx.com/announcements/395458

[teabag]

Infratil selling down a wee bit of LongRoad, getting a considerable increase in the revaluation of remaining holding.

https://www.nzx.com/announcements/396170

[Left Field]

Encouraging to see CEO buying 1.3mill shares on market at av SP of approx $9.05

https://www.nzx.com/announcements/396807

The CEO gave a bullish presentation to NZSA Welly this week which hinted that IFT still undervalued based on recent interest in their Longroad USA initiative.

"The transaction implies a pre-money valuation for Longroad common equity of US$2,000 million. Infratil and the NZ Super Fund will each also invest a further US$100 million and retain a ~37% stake. The balance of ~14% is owned by Longroad management......

Infratil chief executive Jason Boyes said that the pre-money valuation of Infratil's stake at completion implied by the transaction of US$800 million was significantly higher than the independent valuation received on 31 March 2022 of US$220 million, and listed market consensus. It was also in line with the enterprise valuation multiple achieved for the sale of Tilt Renewables' Australian business in 2021, at 40 times Longroad's FY2023E proportionate EBITDA of ~US$83 million[1].

"Infratil is extremely happy with this outcome. We remain very optimistic about the opportunities and outlook for Longroad and are pleased to be increasing our investment as part of this transaction. Longroad is well-positioned in a key geography, with high-quality operating assets, built-in growth through its development portfolio, and a proven team. The new investment from a leading global infrastructure investor in MEAG is a strong endorsement of the business and the sector, and we look forward to working with them."

And all this from an approx $US 200 mill initial investment from IFT..... now valued at $US 2,000 mill.. ..Seems renewable energy could be a very desireable sector for investors.

https://www.nzx.com/announcements/396170

[Left Field]

.....and CEO still buying (another 71,000) shares. Holders will be pleased to see this confidence.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IFT/396886/376443.pdf

[Old mate]

That's 2 million bucks worth . Must be pretty confident alright.

[Left Field]

And now another Director buying.... 55,000 shares. Auspicious.

https://announcements.nzx.com/detail/397251

[Old mate]

Yeah on market another half a Million. Might have to get more

[Left Field]

Nice 20% gain in SP over the last 3 months.... (just saying.)

[BlackPeter]

So - must be a good time to sell? Remember - the market giveth and the market taketh away ...

Some large companies leading the renewable energy sector not doing that flash these days (e.g. Siemens Energy / Gamesa). A combination of high materials cost which can't be charged to customers (fixed price contracts) and brutal competition due to too many players in the industry.

Just wondering when Longroad, Galileo and Gurin Energy start feeling the impact?

 

[Left Field]

So - must be a good time to sell? Remember - the market giveth and the market taketh away ...

Each to their own. Traders will trade. Long term holders will hold and some may even use recent gains to increase their holdings using DCA to stay relatively 'safe'.

FWIW from a TA perspective IFT now above my 30/90day MA Golden Cross territory. Nice example of squeezed Bolly bands too.

Your caution is noted and may well be warrented. Time will tell.

ps...... this quote from Dark Side poster Alokdhir is worth noting;

"IFT is the only major stock whose market cap has increased a lot in last 3 months due to SP going up around 22% ....with index rebalancing coming ahead ...its very possible some funds have to increase its holding based on new market cap thus brokers are accumulating for them
It may peak around 3rd Friday of the month ie 16th Sept ...like it did last time in June too !!!"

[Left Field]

V=http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IFT/399247/379551.pdf

Morrison and Co has completed its acquisition of 4.37 mill IFT shares at an av SP of $9.16.

It'll be interesting to see what happens to the SP in the short term following this acquisition and support.

[Hectorplains]

One New Zealand - getting it ready for sale?  The play book looks familiar.

[Left Field]

V=http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IFT/399247/379551.pdf

Morrison and Co has completed its acquisition of 4.37 mill IFT shares at an av SP of $9.16.
It'll be interesting to see what happens to the SP in the short term following this acquisition and support.

Down to $8.75 today...... where will IFT drop to??

Anyways....some would say it's an opportunity to buy at prices below fair value as determined by CEO and Morrison's in their recent multimillion $ purchases.

[Left Field]

Down a tab below $8.00 today.

Morrisons and CEO now down about 12% on their big buy-up.

In the absence of upside news, likely to sink to the mid $7's.