3i Infrastructure Share Discussion Threads

[jonwig] 19/12/2017 06:45

Citywire comment:

[stevie blunder] 18/12/2017 15:03

I reckon the NAV will be about 210p depending on the difference between “gross” and net proceeds
Given that over half the assets will be cash in the short term the chance of s premium diminishes
Or perhaps not if the rest of their folio contains similar hidden value :-)

[its the oxman] 18/12/2017 10:38

Surely scope for this to drift up 210-220p?

[its the oxman] 18/12/2017 09:48

Being interesting to see next nav update.

[jonwig] 18/12/2017 08:08

June 2015:

[davr0s] 18/12/2017 07:27

And now explicitly talking about excess cash return. Have they don't this before and what route did they take?

[jonwig] 18/12/2017 07:09

Here's the RNS:



Subject to completion of this sale and that of Elenia, 3i Infrastructure expects to have a significant cash balance by the end of the first quarter of 2018. Consistent with our policy of managing our balance sheet efficiently, the Board of Directors will be considering the potential for returning surplus cash to shareholders."

[jonwig] 18/12/2017 06:39

Another factor to think about: AWG and Elenia together produced one-third of the fund's income last year (£27m out of £81m) which suggests they will do a special dividend followed by a two-for-three share consolidation (roughly). They did just this in June 2015 following the sale of Eversholt Rail. I bought more shares with the money.

[rogsim] 17/12/2017 20:35

FT mentions proceeds of £395m:

[jonwig] 17/12/2017 19:33

@cyfran - many thanks. The Times says 580, but not according to this:

Valued at £288m in the last accounts (30/09). Is this (again) an enterprise value?

FT:
The infrastructure fund of listed private equity group 3i has agreed to sell its stake in UK utility company Anglian Water to a joint venture of council pension funds.

The sale, which is expected early next year, is expected to generate proceeds of £395m, the company said.

3i Infrastructure, which is selling the stake to Dalmore Capital and GLIL Infrastructure, bought its interest in Anglian Water in 2007.

Richard Laing, chairman of 3i Infrastructure, said Anglian Water had “proved a good investment” during the past decade. “We believe that now is an appropriate time for the [3i Infrastructure] to realise its stake,” he added.

[cyfran101] 17/12/2017 18:19

15% Anglian water stake sold for £580m.

[stevie blunder] 14/12/2017 10:08

Jonwig, the premium is evident in the lower yield certainly, not so much in the price/NAV this morning ;-)

I have held these since 2008, great return and happy to hold :-)

[jonwig] 14/12/2017 09:20

Stevie - 3IN aren't much blessed with ownership of PPP projects, and hence can command a higher premium.

Last time they had spare cash, they paid it out, and when they need more cash they do a share issue at a premium to NAV. Sort of money-printing.

[stevie blunder] 14/12/2017 08:59

HICL have an NAV of 151.6 and are trading at 155
INPP have an NAV of 145 and are trading at 151

Looks like the market is putting them all in the same basket and the premiums are much reduced, Maybe a Corbyn effect.

Or maybe there are some disappointed holders of 3IN out there moving on.

Having all that cash does create its own problems of course, unless they can deploy it quickly the dividend cover gets trashed, so I can see maybe a tender offer? Really hope they dont do a share buy-back at a premium to NAV,

[davr0s] 14/12/2017 08:25

I have to admit that it's a pretty mute response from the market so far to the sale

[jonwig] 13/12/2017 14:35

Very decent, Stevie! Better than we were expecting yesterday. When they have excess cash they tend to give some back.

[stevie blunder] 13/12/2017 14:25

NAV at 30th Sept were 1817M£

Uplift on Elenia is 227M£

NAV/share was 177p at 30 Sept, so I reckon that rises to 199p

Decent result.

[davr0s] 13/12/2017 14:14

That RNS got things moving a bit. Hopefully we can push up further once the number crunchers do their thing

[davr0s] 13/12/2017 09:20

Muted response but at least it's up a bit. Excitement over for the time being

[jonwig] 13/12/2017 06:53

I've checked back to the earlier links on Elenia sale rumours, and the terminology used is "valued at ..." and "could be worth ...". The Mail link is the only one which uses the term EV. Unfortunately, I do think EV of €3bn is the right interpretation.

Since the RNS was put out at 6:10pm, the market will have its say this morning.

[davr0s] 12/12/2017 20:21

But if it were 3bn then 3in share would be 1.2m so very good. Could be interesting days ahead

[jonwig] 12/12/2017 20:01

DavRos - yes, I've just done the rough sums and there seems to be no uplift to 3IN's equity. (My misinterpretation was the assumption that the equity of Elenia would be worth €3bn. This was never made clear before.) Damn!

They've done special dividends in the past, so any decent uplift would probably result in one.

[davr0s] 12/12/2017 19:58

So trying to get my head around this. They've got it on there books at a tad over 400m and I think I read they own just over 40% so if it's sold for 1bn that's broadly neutral. So a bigger value would clearly be very good. Have I got this all right! If they get a lot more have they indicated what they plan to do with the proceeds