IFT establishing an Asian toehold in renewables
https://www.nzx.com/announcements/378896
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IFT establishing an Asian toehold in renewables
https://www.nzx.com/announcements/378896
Huge, but very diversified and difficult market - and lets face it, Infratil has quite limited (and mixed) experiences to operate in countries other than NZ or Australia. European Airports spring to mind.
Probably a good indication for investors that board starts to feel overconfident. Time to take profits and move in an orderly fashion towards the hills?
Investor briefing here
https://infratil.com/assets/imported...ing-354414.pdf
Infratil have a track record of investing in sectors which are likely to benefit from government subsidies of one sort or another. It’s not all they do, but there’s a bit of a theme there.
NZ Bus was a candidate to hoover up local government public transport funding
The collection of second-string European airports looked likely to be the recipients of central and local government funding
Pacific Radiology and Q-Scan might well expect government funding from various health-related government agencies
Retire Australia looks like a good bet given the money flowing in from (government) pensions
Green Energy looks like being the recipient of various forms of government money as the world de-carbonises
Not every Infratil investment falls into that model, but there’s a definite theme. I think they call it “Social Infrastructure”
It’s nice to have a local version of Brookfield. . . happy IFT holder
In my mind there is a lot to like in the Gurin play. In no particular order:
- A sector with good macro's
- IFT have experience in the sector albeit in other geographies
- Partnered with local operator who is experienced and has skin in the game
- Moderate sized investment on the overall IFT context
- Seem to not be targeting the large projects where risks are perhaps magnified and competition tougher although returns might be greater too
- Have steered clear of the great China dream that many NZ businesses are falling in love with at the moment