There was an article on the AFR earlier about Infratil being...

There was an article on the AFR earlier about Infratil being Airtrunk's heir apparent today after it's 2%+ move in comparison to market which was mostly a sea of red after NVIDIA's sell off last night and grim GDP news locally. Few interesting snippets relating to valuation being discussed recently in this thread.




There are stark differences between Airtrunk and CDC but I do agree, and have been saying for a while that this transaction would create a small re-rate in most data centre companies. Airtrunk has much larger campuses than most other players, and also has huge diversification across APAC, only followed by NextDC with an APAC presence, whereas, CDC is only in Australia, New Zealand and Macquarie Technology in Australia only.

I may add it seems like perfect timing that Commonwealth Super Corporation is looking to sell down it's stake (around 24%) in CDC with data centre fanfare in the air - I recall Jason Boyes was asked if Infratil was interested but didn't really give an answer - I dare say they wouldn't touch it with valuations where they are at the moment, alongside recently doing a capital raise for CDC's capital expenditure as it stands and the fact that CDC is already a very large portion of the Infratil portfolio. The article I read pointed to the Future Fund (which owns around 24% as well) as being the most likely buyer but time will tell.

One other thing I've been watching has been the volume of trades on the ASX which has increased dramatically - the below chart is the last year (September 23 to September 24), it started heating up around May 2024 and has held momentum pretty well since. I'm hoping it breaks into the ASX which opens it up to a wider audience of ETF providers and fund managers who have index constraints - maybe someone smarter than me can decipher the S&P methodology for what warrants inclusion on the ASX200 index.