IFM set to bid for Infratil: report

AUCKLAND: AustralianSuper could have a rival in its efforts to buy Infratil, according to a report across the Tasman.

IFM Investors is preparing a bid, assisted by New Zealand wealth manager Jarden (which operates on both sides of the Tasman) and a US bank — said to be Citi or Bank of America — according to The Australian.

IFM, which has about $A148 billion ($NZ159 billion) under management, grew out of the infrastructurefocused Development Australia Fund, founded in 1990. Today, it is collectively owned by 27 pension funds including — thickening the plot — AustralianSuper.

That leads to another possible twist: that IFM could be a partner with AusSuper in a boosted offer, rather than a competitor.

Both IFM and AusSuper have large pools of funds that need to find investment opportunities providing lowrisk and stable returns, The Australian notes.

Despite raising the prospect, the paper also says that a rival IFM bid for Infratil would be considered somewhat of an aggressive play, given that the pair have worked together on acquisitions in the past.

A joint bid for Infratil would be ‘‘logical’’, The Australian says, but the complexities of putting such an offer together could take quite some time.

Infratil’s board coldshouldered a $5.4 billion takeover offer by AustralianSuper in December, which represented a 28% premium on Infratil’s share price at the time.

The NZX and ASXlisted infrastructure company has since hiked the valuation of its largest asset — its 48% stake in Canberra Data Centres — from $A1.6 billion to $A2.33 billion, although one analyst says it is worth $A3.2 billion based on peers.

Infratil shares closed on Friday at $7.38 on the NZX, for a market cap of $5.33 billion. The stock has been at or near AusSuper’s takeover offer since it was revealed on November 9.

Jarden and Infratil have been asked for comment. IFM declined comment. — The New Zealand Herald