3i Infrastructure (3IN)

[Arborbridge]

If patient enough, one does occasionally get a chance to buy at a discount - fleetingly!

Arb.

[pje16]

If patient enough, one does occasionally get a chance to buy at a discount - fleetingly!
Arb.

I need more than 1%

[Arborbridge]

If patient enough, one does occasionally get a chance to buy at a discount - fleetingly!
Arb.

I need more than 1%

You could have bought at 6-8% discount , October last year.

[Dod101]

And it would seem that the existing private shareholders will have very little opportunity to participate.
Dod

Thanks for your input Dod. Shame about existing private shareholders if that is indeed the case.
Ian.

I hold and have heard nothing
The way the market is today they could close below the place price of 330p
currently 333.5p

It does look as if the pricing is a little ambitious, especially with the market being down nearly 1% but I still think that private shareholders should be given the opportunity in principle. Thy do not seem to have been given that.

Dod

[pje16]

And it would seem that the existing private shareholders will have very little opportunity to participate.
Dod

Thanks for your input Dod. Shame about existing private shareholders if that is indeed the case.
Ian.

I hold and have heard nothing
The way the market is today they could close below the place price of 330p
currently 333.5p

It does look as if the pricing is a little ambitious, especially with the market being down nearly 1% but I still think that private shareholders should be given the opportunity in principle. Thy do not seem to have been given that.

Dod

price now 329p
not sorry I will miss out

[Dod101]

And it would seem that the existing private shareholders will have very little opportunity to participate.
Dod

Thanks for your input Dod. Shame about existing private shareholders if that is indeed the case.
Ian.

I hold and have heard nothing
The way the market is today they could close below the place price of 330p
currently 333.5p

It does look as if the pricing is a little ambitious, especially with the market being down nearly 1% but I still think that private shareholders should be given the opportunity in principle. Thy do not seem to have been given that.

Dod

price now 329p
not sorry I will miss out

Interesting. As we said, the pricing was a bit ambitious because 329p or even a bit lower is well within the range for 3IN in recent weeks. Might even leave the management with egg on their faces.

Dod

[monabri]

And it would seem that the existing private shareholders will have very little opportunity to participate.
Dod

Thanks for your input Dod. Shame about existing private shareholders if that is indeed the case.
Ian.

I hold and have heard nothing
The way the market is today they could close below the place price of 330p
currently 333.5p

It does look as if the pricing is a little ambitious, especially with the market being down nearly 1% but I still think that private shareholders should be given the opportunity in principle. Thy do not seem to have been given that.

Dod

price now 329p
not sorry I will miss out

I wouldn't be so hasty to dismiss if timeframes are (hopefully - the longer the better ) reasonable. This is a plot of total return with divis reinvested starting 10 years ago. There have been opportunities to acquire at a good entry point by the look of it.... Of course, past performance..future performance etc.

(disclosure : no holding in 3IN but a small holding in 3i Group which currently has a fairly unHYPpable yield of 2.8% but the TR has been ..quite nice! (wish I'd had the cash to buy more) ).

source : https://www2.trustnet.com/Tools/Chartin ... O:GLBLGRTH




I added a few extra companies for comparative purposes...

(same source as above)

[Dod101]

I am more than happy to be invested in 3iN but our discussion is on the price of the Placing. I cannot see investors buying it at 330p if the shares can be bought in the market for less than that, although presumably there will be no transaction costs to take up the Placing. Anyway we will know presumably some time on the 9th or 10th what the outcome is.

And there are of course other investment strategies than a HYP

Dod

[monabri]

I am more than happy to be invested in 3iN but our discussion is on the price of the Placing. I cannot see investors buying it at 330p if the shares can be bought in the market for less than that, although presumably there will be no transaction costs to take up the Placing. Anyway we will know presumably some time on the 9th or 10th what the outcome is.

And there are of course other investment strategies than a HYP

Dod

I can't see this being taken up! The amount they are trying to raise is ?? (well, I can;t see the target - just a note on their credit facility). In addition the current retail shareholders will be diluted.

[Dod101]

The maximum they can raise seems to be 10 % of the ordinary share capital which seems to be around 77 million shares. At 330 pence that would be around £231 million. They do not otherwise seem to have any target. That was the authorisation they were given at the AGM and they are allowing themselves the right to scale the amount back. I can understand them wanting to get the best price they can because they can then scale back the number of new shares they offer to help with people like me who may complain about being diluted. Of course that is all we can do since they have authority under the AGM resolution.

They will announce the result at 7am on 10 February.

Dod

[idpickering]

Results of Placing.

The Company is pleased to announce the completion of the equity placing announced on 6 February 2023, conducted under the existing non pre-emptive authorities granted by shareholders at the Company's annual general meeting on 7 July 2022 (the "Placing").

A total of 30,915,990 new ordinary shares ("Shares") of no par value each were issued at a price of 330p per Share, raising net proceeds (after estimated Placing costs) of £100 million. A scale-back exercise has been undertaken, respecting the principles of soft pre-emption through the allocation process. The Placing price represents a discount of approximately 3.4% to 3iN's share price immediately prior to the announcement of the Placing.

Commenting on the Placing, Richard Laing, Chair of 3iN said:

"We are pleased to announce the result of this capital raise and we would like to thank our shareholders for their continued support. The proceeds will provide the Company with useful additional flexibility to fund attractive discretionary growth opportunities in our portfolio, such as a recent £28 million commitment to acquire Future Biogas, which as a sister company to Infinis will form the largest producer of green gas in the UK."

The Shares will, when issued, be credited as fully paid and rank pari passu with the existing ordinary shares of no par value in the capital of the Company including the right to receive all dividends and distributions declared, made or paid.

Application will be made to the Financial Conduct Authority for admission of the 30,915,990 Shares to the premium listing segment of the Official List maintained by the Financial Conduct Authority and to the London Stock Exchange plc (the "LSE") for admission to trading of the Shares on the LSE's Main Market for listed securities (together, "Admission"). It is expected that Admission will take place on Tuesday, 14 February 2023 and that dealings in the Shares on the LSE's Main Market for listed securities will commence at the same time.

On Admission, the Company's issued share capital will consist of 922,350,000 Shares with voting rights. This figure may be used by Shareholders in determining the denominator for the calculation by which they will establish if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

The Placing is conditional, among other things, on Admission being effective and the Placing Agreement entered into in connection with the Placing not being terminated in accordance with its terms. The Shares have been placed by J.P. Morgan Securities plc (which conducts its UK investment banking business as J.P. Morgan Cazenove) ("JPMC") and RBC Europe Limited (trading as RBC Capital Markets) ("RBC" and, together with JPMC the "Joint Bookrunners").

https://www.investegate.co.uk/3i-infras ... 00045150P/

Ian (No holding).

[Dod101]

So they appear to have judged the price perfectly and now have an extra £100 million of capital for the business and an extra nearly 31 million mouths to feed with their dividends. The new shares will participate in the final dividend for this year despite the fact their year is more than 10 months over!

Dod

[idpickering]

3i Infrastructure plc Pre-close update March 2023.

Highlights

· Portfolio performing strongly: In particular, we note strong performance from TCR, Tampnet, Infinis, Valorem, Attero, ESVAGT and Ionisos, each of which continues to benefit from the positive underlying growth trends and contract wins announced in the Q3 trading update. The other portfolio companies are performing in line with expectations, with the exception of DNS:NET, which continues to face challenges with its network rollout.

We're confident that the portfolio will continue to generate attractive further investment opportunities.

· Income in line with expectations in the Period: Total income and non-income cash of £104 million was received in the Period.

· FY23 dividend target: The Company is on track to deliver the FY23 dividend target of 11.15 pence per share, up 6.7% from FY22, which is fully covered by net income.

· Capital raising: 3iN successfully raised net proceeds of £100 million in February through an equity placing, providing the Company with additional flexibility to fund attractive discretionary growth opportunities in our portfolio, such as the recent £28 million acquisition of Future Biogas, which, together with its sister company Infinis, forms the UK's leading independent producer of green gas.

· Balance sheet: At 30 March 2023, the Company had available liquidity of £405m, including a cash balance of £6 million, and undrawn commitments of £399 million available under its £900 million Revolving Credit Facility ('RCF'). The RCF commitments run to November 2025, with a further one year extension option available under the terms of the facility.

· No near-term refinancing exposure: There are no material refinancing requirements in the portfolio until 2026. As at the Period end date, c. 95% of the long-term debt facilities are either hedged or fixed rate. We expect that only c.11% of portfolio company debt will mature by March 2026.

https://www.investegate.co.uk/3i-infras ... 00088490U/

Ian (No holding).

[Dod101]

3i Infrastructure plc Pre-close update March 2023.

Highlights

· Portfolio performing strongly: In particular, we note strong performance from TCR, Tampnet, Infinis, Valorem, Attero, ESVAGT and Ionisos, each of which continues to benefit from the positive underlying growth trends and contract wins announced in the Q3 trading update. The other portfolio companies are performing in line with expectations, with the exception of DNS:NET, which continues to face challenges with its network rollout.

We're confident that the portfolio will continue to generate attractive further investment opportunities.

· Income in line with expectations in the Period: Total income and non-income cash of £104 million was received in the Period.

· FY23 dividend target: The Company is on track to deliver the FY23 dividend target of 11.15 pence per share, up 6.7% from FY22, which is fully covered by net income.

· Capital raising: 3iN successfully raised net proceeds of £100 million in February through an equity placing, providing the Company with additional flexibility to fund attractive discretionary growth opportunities in our portfolio, such as the recent £28 million acquisition of Future Biogas, which, together with its sister company Infinis, forms the UK's leading independent producer of green gas.

· Balance sheet: At 30 March 2023, the Company had available liquidity of £405m, including a cash balance of £6 million, and undrawn commitments of £399 million available under its £900 million Revolving Credit Facility ('RCF'). The RCF commitments run to November 2025, with a further one year extension option available under the terms of the facility.

· No near-term refinancing exposure: There are no material refinancing requirements in the portfolio until 2026. As at the Period end date, c. 95% of the long-term debt facilities are either hedged or fixed rate. We expect that only c.11% of portfolio company debt will mature by March 2026.

https://www.investegate.co.uk/3i-infras ... 00088490U/

Ian (No holding).

Thanks. I like this company but I would like to know what its current NAV is. I guess we will need to await its results announcement for that.

Dod

[idpickering]

Thanks. I like this company but I would like to know what its current NAV is. I guess we will need to await its results announcement for that.

Dod

You're welcome Dod. I guess you're right.

Full year results are due 10 May 23, see; https://www.3i-infrastructure.com/inves ... ndar/2023/

Ian.