3i Infrastructure Share Discussion Threads

[jonwig] 13/5/2015 05:42

Special dividend - the right thing to do if they can't find enough suitable investments at the right price ... and they always carried a big cash balance in any case.

The share consolidation is a bit of sleight of hand, as it means the 7p forward dividend will be made on fewer shares in total, so each holder will receive a smaller cash payment (equivalent to about 6.3p had they not consolidated).

[cyfran101] 12/5/2015 18:21

...and a special div in July (if passed)

[jonwig] 12/5/2015 06:16

FY results:



NAV at 31/03 was 149.9p, so the current share price premium is only 9%, rather less than JLIF's announced this week.
Forward yield at 7p is about lowest in sector, too.

[jonwig] 23/3/2015 14:38

If the bid happens, with another uplift to valuation ... ?

But all the infra funds have been strong lately: interest rates low for longer, scramble for assets, attractive yield.

The main buyers are probably discretionary personal wealth advisors.

But there will be fierce competition -

[cyfran101] 23/3/2015 14:10

A consortium involving 3i Infrastructure, Abu Dhabi Investment Authority and Kuwait's Wren House Infrastructure is one of three bidders for Goldman Sachs/Prudential's 33% stake in Associated British Ports.

Deal could be worth £1.2bn

As reported by Sunday Times 22/03/2015.

[nerja] 29/1/2015 18:07

Looks like this is going to drift back down to 152p to close the gap.

[jonwig] 21/1/2015 07:47

The deal needs to be passed by the European competition commission, but that shouldn't be a problem here - the other ROSCOs (Porterbrook, Angel) don't appear to have any overlaps.

[jonwig] 20/1/2015 14:17

If my 15p/sh uplift is correct, this now trades at the smallest premium of all the major infra funds, though allowance needs to be made for the cash balance drag.

Whatever - I added earlier, on the grounds that they are "different enough" to warrant a bigger premium.

[jimcar] 20/1/2015 14:04

I think the sale is good news, especially with an election coming up and a lot of talk about nationalisation of the railways about bound to cause uncertainty. The only problem is what to do with the money as a lot of organisations are chasing infrastructure assets - possibly more outside the UK? or is India becoming fashionable again?

[cyfran101] 20/1/2015 12:11

Jimcar was right and not too far on valuation. Pity a core holding has been sold but at that price the logic is sound though unsure how it will affect our cross rail core holding. Now will they spend it on the barclays fund with 3i or on other opportunities?

[jonwig] 20/1/2015 08:28

Remarkable premium, isn't it! (But look at the valuation uplift from March to September last year.)

Whether there's any read-off to other infra funds I doubt, as it's not a typical PPI project.

EDIT: I think the price means a 15p increase over the last reported NAV.

[nerja] 20/1/2015 08:03

WOW, get in there

[cyfran101] 22/12/2014 00:13

The article actually states that 3IN may increase their stake. Ka-Shing is interested in acquiring the other two investors interests in Eversholt.

This has been milling around since October so will wait and see what arises but I agree that either way the valuation of our existing stake will increase.

[jimcar] 09/11/2014 22:49

Eversholt mentioned in Sunday times today. Thinks it may be put up for sale and could realise 1.2b for the owners after paying off debts of 1.4b.

3iN own 33% so could get 400m. The recent half yearly report valued it at 240m (up from 160m at start of period). I had thought the value of 3iN was looking toppy but this could justify it.

[m.t.glass] 07/11/2014 12:13

3IN is among a large number of India-related stocks listed on my INDIA thread -

[stevie blunder] 06/11/2014 17:54

I do wonder how much of the NAV uplift is "real" since a lot of it is due a drop in the discount rate from 11.8% to 10.9% and it is now at the lowest in the company's history. It still looks fairly conservative though.

On the plus side there was also an adverse foreign exchange movement of 20£M which may reverse in the future. And the gain in the Eversholt looks real enough as they got new extensions to the rolling stock leases.

They are having trouble finding decent returns on new investment prospects:

" challenging for the Company to find new investment opportunities in Core infrastructure consistent with its return target. The Board reviews the Company's shareholder return objectives on a regular basis, taking market developments into account, and will make an assessment at its next annual strategy review meeting early in the new year."

Perhaps a hint that the 5.5% target may need adjusting.

I also have HICL,and INPP, I keep looking at the charts and thinking they look toppy, but I bought them for income. I could be persuaded to reduce if the yield got below 4% tho.

[jonwig] 06/11/2014 14:30

Stevie - yes, I haven't had time enough to digest yet.

This and HICL (larger, a bit different) are going to amazing NAV premiums. This doesn't make me cry "sell" but I shall need to cancel my broker's DRIP for them, I feel!

[stevie blunder] 06/11/2014 12:55

Decent half year results. Share price is getting ahead of the NAV a bit, but still NAV is up 7.8% since year end at 136.3p

If they keep the divi target as 5.5% of opening assets and NAV holds up till year end, that surely implies a 7.8% rise in Divi next year, which would be nice. Of course they could change the target.

[cyfran101] 20/10/2014 13:42

Very true jonwig. There is plenty of interest at this stage so I suspect it wouldn't meet our value criteria but good to see 3in active to add another core holding.

[jonwig] 20/10/2014 06:06

3in might not be the only interested party, of course - the Guardian suggests it will fetch around £300m.

The French state-owned railway company, SNCF, owns 55% of Eurostar, while the state-owned Belgian company, SNCB, owns the remaining 5%.

SNCF has indicated that it is not interested in buying Britain’s stake but has a “last look” right that would allow it to come in at the end of the bidding process and pick up the holding at a 15% premium.

Pension companies, investment funds and infrastructure funds are seen as the likeliest bidders, with the UK government hopeful that the sale will be completed in the first quarter of 2015.

They still have £90m cash to deploy.

[cyfran101] 19/10/2014 23:38

3in checking out uk government's stake in Eurostar

[cyfran101] 12/10/2014 16:32

2 of the three owners of Eversholt (not including 3i) are believed to be looking to sell up after Porterbrook was sold recently. Not sure if 3i will look to increase their stake.

[cyfran101] 10/11/2013 21:21

Interesting article in sundays times (business page 6). It focuses on water companies and states that their debt could cause problems. Due to being locked into 6-7% rates on bonds and derivatives prior to the financial crash for up to 50 years and our current tarriff regime is based on those rates. However the next five years will be in the 4-5% range, based on current rates. The upshot is "locked into expensive interest payments but less revenue....utlitilies can exit these rates but will be penalised accordingly" . Therefore although AWG reported debt is 79% of assets with exit penalties it would be 103% (2nd worst) and could threaten our income of 10m from AWG if they determine reducing debt is more important than payouts to shareholders. Hopefully with refinancing at elenia payouts from there and XLT full year payouts will compensate for any risk from this and BIFM opportunities will diversify the payout too.

[jonwig] 01/10/2013 07:32

Yes, it's been like this for years - maybe they have tried to exit, but no decent bids forthcoming?

[its the oxman] 01/10/2013 07:15

The exciting fast growth from India is not happening. In fact the opposite is occurring and this will impact the next revaluation. No wonder they are looking to exit from these investments.