Wellington has voted Green. So it's oniy a matter of time before they don't want an Airport on their books.
This will play nicely into IFTs hands.
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Wellington has voted Green. So it's oniy a matter of time before they don't want an Airport on their books.
This will play nicely into IFTs hands.
Very nice of the council to consider selling its airport stake at the almost worst possible time (for them) in terms of a likely valuation achieved.
Further confirmation
"To date, LoadRoad has developed 3.8 GW of solar and wind projects. Management has set an annual development target of 1.5 GW, and in total intends to deliver 10 GW by 2027. If achieved, it will see LongRoad’s earnings triple and, due to the IRA, will require limited new equity funding"
"The Repsol renewable projects up for sale have a total capacity of about 600 megawatts and the transaction values them around 700 million euros ($747.18 million), sources said"
https://finance.yahoo.com/news/zara-...083951766.html
Wellington city council today voted to proceed with investigating a plan to sell its stake in Wellington airport.
I have a feeling IFT will get a good deal here, and whatever long term plans they have for it, whether retaining it as a long term asset or selling it, that will be a lot easier to do with 100% ownership.
They are business savy, but they also want the best for everyone. They may pay a premium to get those shares to have more control. Who
knows, airport may drip feed it to an investor.
PS shortly we may get to see a new high. I am sure people are regretting not holding this share over their dropping portfolios.
The sale logic makes total sense for WCC. Sell the airport holding and reinvest in a less risky Perpetual Investment Fund.
Are airports a good investment these days? Sure, the NZG needs immigrants in the absence of policies that boost labour productivity. However future pandemic travel restrictions and flight carbon and climate taxes are a risk.
I'm not so sure that Infratil would want 100% ownership of WIAL. After all, Infratil do have some history in the second-string-airport ecosysyem. . .
So whilst WIAL is something of a cash cow, I think a WCC exit might be followed by an Infratil exit. WCC can test the water as far as pricing goes, and that'll inform any Infratil decision to stay or go.
S&P predicted divvies for WIAL
http://nzx-prod-s7fsd7f98s.s3-websit...073/404021.pdf
"Dividends, after adjustments for subvention payments, of NZ$60million in fiscal 2024, NZ$30 million in fiscal 2025 and NZ$43million in fiscal 2026."