The  bid  for Infratil  from  Australian  Super was a fizzer – and now we can see why that’s been great for shareholders and NZ

One  of  the  busiest  companies  on  the  NZX,  investment company Infratil,  has  underlined that  not  all  of the  sharpest  operators in NZ business have  deserted Wellington   for  the brighter  lights  of  Auckland.

This  week  the  company  announced it has executed a conditional agreement to acquire between 50.1% and 60% of Pacific Radiology Group, a comprehensive diagnostic imaging business,  from its existing doctor shareholders for a total consideration of up to $350m.

Pacific Radiology is the largest private diagnostic imaging service provider in NZ, operating 46 clinics in the South Island and lower North Island and employing 90 radiologists.

The acquisition enterprise value of $867m implies an EV/EBITDA multiple of 12.6-13.3x.

Infratil chief executive Jason Boyes says the Pacific Radiology acquisition, if completed, will sit well with Infratil’s other high-performing, high-quality assets, and builds on its investment last year in Qscan Group, a leading diagnostic imaging business in Australia. Continue reading “The  bid  for Infratil  from  Australian  Super was a fizzer – and now we can see why that’s been great for shareholders and NZ”

Market darlings falter but the rise of other stocks has lifted the NZX-50 to a new record

The  NZ  sharemarket bounded to a  new high on Wednesday, with the NZX-50 index surpassing  the previous  peak  to  climb above 12870.

Investors  are   not  exactly  dancing  in the  streets, although in  past eras they might have been.

But  there  seems  to be  a  clear conviction among investors  that  the  NZ economy  is  escaping from the  shackles of  the Covid-19  pandemic faster than  most others, and anyway, where else can funds  be  placed  for  a  decent  return (apart from  the  overheated  housing  sector)?

Strangely, too, the  market hit  its  new  peak  just  as the  gloss  had gone from the  stocks  which  had  enjoyed to that  point  the  status   of  market darlings, F&P  Healthcare  and  A2 Milk. Continue reading “Market darlings falter but the rise of other stocks has lifted the NZX-50 to a new record”