Assuming the highest third party bid was matched they will be paying a fullish valuation, so the return on the new stake can’t be great. It is also not obvious that IFT’s ownership rising from 48.25% to above 50% confers a significant advantage given the smooth progress they have achieved with the current partnership till date. It seems to me that they could have saved the investment for their other ventures. (correction to my comments above - CSC which owns 25% of CDC is divesting 12,5% which is to be split between the other two partners - Infratil and Future Fund at a proportion we will know about in a day or two)
IFT Price at posting:
$9.85 Sentiment: None Disclosure: Held
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