|A very interesting few weeks has ended with the Brexit vote and the defensive quality of GCP has held up well.Long may it continue.|
|NAV as of 31st March was 107.68, so with a price today @ c.10% premium, you might expect any placing to be around the mid-point of the two, @ c.113p. I'd expect the share price to fall a little towards this on the announcement, but recover once the placing has been completed.|
|I'm a bit out of touch with this, having sold, but - yes - they will place new shares with institutions ("the placing programme") and - no - PIs needn't apply ("disapplication of pre-emption rights").
The fact is, that it's much easier to ring round instis (most of them pension funds and wealth managers in this case) than run the expense of an open offer to all shareholders (needing a prospectus, etc.). CI companies can do this more easily I think.
The shares will be placed somewhere between the nav and the current sp, which I presume is trading at a premium.|
|An EGM has been called for 14 April and it looks as though the main business is to be the creation of 175 million new shares ... the implication being that there is to be a placement.
Does anyone know what this is actually about and what its implications are?
I've seen comments (but I may be mistaken) that PIs needn't apply ... implying that its to be a private placement ... but its significant at 1:3 or 1:4 so unless the pricing is handled well there could be quite a dilution effect.
Of course if the funds are destined for good projects it could easily be a sign of growth ...
So what's the inside track on this one?
|Is the dividend likely to grow here at all? I note from the initial Prospectus (2010) that the target was a yield of 8% on the placing price of 100p. That would be 8p. Current dividend is 7.6p.|
|Added for the dividend yield at £1.13 was not expecting a 5p rise in a week.
One of my better buys!|
|I daresay the death, and presumably previous illness, of a founder-Director Trevor Hunt, reported on 6th May, will have affected recent share-price performance. I am adding today.|
|It will be interesting to see what they invest the £14 million in - may add if in 8%+ range.|
|Thanks jonwig. I have a small holding and I've been wondering whether to increase it given the drop in price and also the fact it looks like interest rates will remain rock bottom for some time. Makes investments such as these seem an attractive long term bet.|
- new investments - yes, onshore wind is unloved, large-scale solar less in need of subsidy. Small-scale solar might follow - reduced incentive to fit panels;
- existing contract terms: as solid as you could want. Future ones might be tighter. See also post #37.|
|What are the implication of Tories getting back in again? They are anti-renewables and want to cut subsidies. I assume this may inhibit further investment in new projects but is there any threat to current and ongoing commitments by the govt which ultimately fund the interest payments on GCP's loans and investments?|
|There's a fair amount of diversification, but projects seem to be smaller, and are paying interest to GCP of 8 - 11%.
I'm rather concerned that an infrastructure project should need to borrow at these rates, especially when interest is funded from FITs. It suggests to me that the FIT regime is too generous. (It's been changed for large projects, I don't know about smaller ones.)
Sold a while ago.|
|I would hope to see more diversification over coming deals for sure.|
|Is the drop today due to concern in how their model is skewed towards one customer "A Shade Greener" and rooftop solar.
Anyone have concerns?|
|Nice to see this rising|
|FY results to 30 Sept:
Dividends of 7.6p paid, and target is 8p for next year.
NAV is 104.53p/sh, so we're at a 16% premium, which looks to be in line with other big infra funds.
The suggest they might adopt up to 20% "structural gearing". I think that's because they expect a lot of new PF projects to be available next year (after the election).
Gearing should increase the net assets per share and dividend, of course, but also reduce the premium. But their debt assets appear to be earning fixed rates, so I'd expect their own debt to be fixed, not LIBOR + x.|
|Thanks for links - you've looked into this more deeply than me.
Would promotion be a significant re-rating? I'm looking at 3IN, HICL and JLIF which have comparable premiums to NAV.
FTSE 100 would be a different matter, but that's not to wait for.|
|The FTSE decision was made yesterday, based on the market caps at close on Tuesday.
According to the company, dealings in the placing shares commenced on 25th Nov, making a total of 513,848,242 shares in issue. However, I see that FTSE aren't going to recognise that until Mon, 22nd Dec, the start of the new quarter. They presumably decided there hadn't been sufficient increase in the number of shares in issue to warrant inclusion between reviews. That's strange because the FTSE Ground Rules state that changes of over 10% are included between reviews and this change was about 14%. Ah well!
|Typo - I think it's the placing, as you suggest.
Current MCap of £602m vs £578m for GMD.
At 30 Sept the MCap of GCP was about £535m. There was a placing programme in between which raised £70m or so.
It may be that the decision was made before 21 Nov, when the placing result was announced. The free float is taken into account, but that looks OK.
Next quarter perhaps?|
|I wonder why GCP didn't qualify for promotion to the FTSE 250 in tonight's index review. GMD got promoted instead. GCP aren't even on the reserve list. Perhaps the recent placing shares haven't been included in this review.|
|Infrastructure investment must be treated as a wholly independent sector rather than a bolt-on for real estate or private debt investors, according to a panel of experts.
There might be implications for institutional asset allocation, I don't know.
|Received my divi payment today..|
|Thanks jonwig. For some reason I'd missed this RNS in July, so was wondering if the payment was going to be pushed back to Sept. However, payout date was stated as 27 Aug, so no worries because as you rightly say, you do tend to have to wait a couple of days before the brokers pass it on.
RNS Number : 2828M
GCP Infrastructure Investments Ltd
15 July 2014
GCP Infrastructure Investments Limited
Headline: Dividend Declaration and scrip dividend alternative
15 July 2014
The Board of the Company is pleased to announce a dividend of 1.9 pence per ordinary share, for the period from 1 April 2014 to 30 June 2014. The dividend will be paid on 27 August 2014 to holders of ordinary shares recorded on the register as at the close of business on 25 July 2014.|
|Wirral - I have it noted as payable today. With these CI funds, payment tends to be a few days late into the account. Not to worry, I'd say!|
|Was expecting a dividend announcement/payout this month, but looks like its going to be September now...?|