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Infrastructure investment company, Infratil Limitedâs (ASX:IFT) shares were placed in a trading halt today at the request of IFT, pending it releasing an announcement concerning a potential acquisition. Today, the company has confirmed that it is currently in talks with Vodafone Group Plc in relation to a potential transaction involving an acquisition of Vodafone New Zealand.
The company has maintained a consistent approach to investment over multiple market cycles. The company is focused on earlier stage opportunities in well-researched areas where it has a strong operating capability. Further, the company is involved in the development of scalable platforms that can create future proprietary re-investment opportunities.
Infratil Limited intends to build a balanced portfolio capable of delivering capital growth. The company has been looking for strong mid-teen investment cases with limited downside and an asymmetric upside risk profile. In the past few years, the company has established various new platforms to drive future growth and returns. The establishment of significant renewables, retirement and data platforms over the last 5 years has largely set the future composition of the portfolio for the next decade.
For the half year ended 30 September 2018, the company reported net parent surplus from continuing operations of $58.5 million and consolidated underlying EBITDAF from continuing operations of $338.8 million.
The company has established a balanced portfolio capable of exceeding target equity returns while operating safely between defined credit and liquidity parameters. It is believed that the Portfolio will require ongoing active management and carry a managed proportion of early-stage risks. The future IFT portfolio has a very different complexion given the proportion of higher growth services and sectors.
The company believes that it is well positioned in scalable high-growth sectors with good sector and jurisdictional diversification. The Infratil portfolio is in balance to deliver its targeted returns and moreover, the companyâs existing growth platforms will continue to drive earnings growth and capital deployment. The company believes that its Portfolio mix will evolve as growth platforms grow, reinforcing the need for strong New Zealand core assets to maintain balance. The companyâs FY2020 Underlying EBITDAF guidance range from continuing operations is set at $510-$540 million.
The company is going to announce its full-year results on Friday 17 May 2019.
The discussions with Vodafone and financiers regarding the acquisition of Vodafone New Zealand are currently ongoing and incomplete, and there is a possibility that it may not result in a transaction occurring.
The stock is trading at a price of $4.350 with a market capitalisation of ~$2.43 billion as on 10 May 2019 (AEST 2:02 PM). The stock has provided a year till date return of 26.09% & also posted returns of 29.85%, 19.18% & 10.41% over the past six months, three & one-month period respectively. The stock is having a annual dividend yield of 3.54%.
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