manxchatterbox Posted February 20, 2006 Share Posted February 20, 2006 courtesy of MoneyWeek at maneyweek.com on 09.12.2005:- The world’s foremost investor in infrastructure plays, Australian-based investment bank Macquarie, is already said to be looking at the local ferry operator, the Isle of Man Steam Packet Company. Macquarie will be well aware that there is potential for reviving unused ferry routes, and the government plans to double visitor numbers to 500,000 per year by 2008 – not least because the first casino is likely eventually to be followed by others. where did this figure come from? any takers?? Link to comment Share on other sites More sharing options...
Roger Smelly Posted February 20, 2006 Share Posted February 20, 2006 Probably from the same consultants that advise the government how to spend/waste their money Link to comment Share on other sites More sharing options...
Tugger Posted February 21, 2006 Share Posted February 21, 2006 Macquarie aren't well known for throwing their money away though, unlike the government. This is good news, although I think it is a little optimistic Link to comment Share on other sites More sharing options...
manxchatterbox Posted February 21, 2006 Author Share Posted February 21, 2006 there was a very interesting presentation at the Hilton earlier given by a chap from Barclays Private Equity as a guest of the Chrtd Inst Mngmnt talking all about venture end equity capital and dealing with Managemnt Buyouts etc etc... the presenation threw some light on how deals are structured and the returns... ....makes you wonder about Montague's July '03 purchase of IOMSPCo from Sea Containers for £142million and the sale to Macquarie for £220 million announced on 3rd Sept2005... Montague said back in '03:- ‘“This is exactly the kind of high quality business that we like to invest in with stable revenues and predictable earnings streams. Steam Packet has an exceptional management team and good growth prospects as the economy of the Isle of Man develops.” When they sold Montague said:-“This has been another solid investment for Montagu; backing a top quality business and first rate management team. The Steam Packet management has significantly developed and improved the business over the last two years, establishing the ferry operator as a strong stand alone business and enhancing the service to islanders through dedicating its fleet to servicing the Isle of Man. This has delivered better quality vessels and greater capacity for passengers and vehicles at sailing times to meet peak demand from residents.” Macquarie Bank is a natural fit as the new owner of The Isle of Man Steam Packet. It is a global leader in the infrastructure sector with a track record in successfully and responsibly managing essential community infrastructure assets around the world. The Steam Packet will benefit from Macquarie's commitment, global resources and specialist expertise. ..end quote. So, if the management of IOMSPCo managed to increase its value by £78million over two years how and over what term and to what extent do they have to increase the value for Macquarie?? It was also interesting to see that one of the lapel guest badges for the presentation was for Hamish Ross..I wondered if he was picking up tips as to how to structure a MBO??? - particularly if the TT ends sometime soon after its centenary there will be a big whole in anticipated earings and I could quite imagine Macquarie then wanting to offload its investment..any thoughts from any investment gurus??? Link to comment Share on other sites More sharing options...
manxchatterbox Posted February 21, 2006 Author Share Posted February 21, 2006 incidentally the prestigious event was exceptionally well attended...although notable by his absence during the presentation was the owner of a lapel name badge provided for a business reporter from a local radio station...so unless he snokk in during the meal afterwards don't expect to hear any interview about the subject...come to think of it neither was the written press in attendance...I guess the topic was deemed too technical and high falutin' finance for reporting to Mr Average Joe Public.... Link to comment Share on other sites More sharing options...
haX0red_Account Posted February 22, 2006 Share Posted February 22, 2006 mcb, intriguing angle but sorry to disappoint; if the doomsday scenario were to happen then doubt an mbo would occur; mr ross was probably there in a more general capacity- if that was going to happen, he'd not be advised to do it in public. timescales wouldn't make it too friendly to theories either. Macq have got a good rep in such infrastructure deals but recently talk's been that they've taken their eye off the ball on some deals- certainly this would rank as a pretty small deal in their book. Probably need an IRR of around 15% a year to make it viable and as much of the juice will be in declining fuel (book) costs and increasing freight, they probably won't be freaking too much just yet. Translation=expect local prices to rise on imported goods...would certainly seem to make sense to buy even on a higher valuation than the montagu PE sale if you factor in cost savings and the unspoken population growth policy...now if you want a REAL conspiracy theory...take babcock and brown, macquarie, the isle of man and the space/satellite industry.. Link to comment Share on other sites More sharing options...
manxchatterbox Posted March 28, 2006 Author Share Posted March 28, 2006 MIG plans 'mature' toll road asset sale By Sundeep Tucker in Sydney Published: March 28 2006 03:00 Macquarie Bank's flagship specialist investment fund is to divest the bulk of its "mature" Australian toll road assets to concentrate on acquisitions in the US and Europe. Macquarie Infrastructure Group (MIG), a listed satellite fund spun out of Australia's Macquarie Bank in 1996, yesterday said it would sell its stakes in three Sydney motorways because the assets had entered the "mature phase of their life cycle". So, how long before the ownership of IOMSPCo is thought to be "mature"? Link to comment Share on other sites More sharing options...
manxchatterbox Posted April 12, 2006 Author Share Posted April 12, 2006 sadly I also heard to-day MR reported as news the previous posting here regarding Macquarrie..posted here on 28th March...brought to you by MR 11 April....up-to-date as usual not..what are their reporters paid for??? Link to comment Share on other sites More sharing options...
Gladys Posted April 12, 2006 Share Posted April 12, 2006 What is the news? Macquarrie are investment bankers, they will sell and buy assets that fit their portfolio profile and policy. Doesn't mean the Steammie is up for imminent sale, nor any other implciation for our beloved carrier! Are we to have news updates everytime they buy or sell anything? When the word is out that they intend to sell, then perhaps there will be more interest. I'm sure IOMSPCo is small beer in their scheme of things! BTW, does anyone remember how reviled the Steammie was in years' gone by, always accused of profiteering, archaic or no service? Nothing changes! Link to comment Share on other sites More sharing options...
manxchatterbox Posted April 12, 2006 Author Share Posted April 12, 2006 the point is MacQuarrie are selling assets which have entered the "mature phase of their life cycle". to my mind this says they have extracted as much free cash flow as they can and now the assets need significant investment for maintenenance and renewal MacQuarrie don't want to foot the bill and are off-loading what would otherwise be a costly liability...so if they have bought the IOMSPCo 'cos they want use of cash flow then what is the IOMSPCo going to use to maintain the vessels and for replacement in due course??? Link to comment Share on other sites More sharing options...
Gladys Posted April 12, 2006 Share Posted April 12, 2006 It seems irrational to buy an asset rapidly approaching its mature phase for re-sale, without the investment then will they recover the initial investment? Also, is the short-term profit (cash flow is different) sufficient to offset the difference? Isn't the Ben up for replacement in the very near future? If it is a short term investment, it does seem a tad unviable. Link to comment Share on other sites More sharing options...
LoneWolf Posted April 12, 2006 Share Posted April 12, 2006 to my mind to your mind ? Presumably this is the preamble to another load of nonsense. Link to comment Share on other sites More sharing options...
manxchatterbox Posted April 12, 2006 Author Share Posted April 12, 2006 GTBB "Isn't the Ben up for replacement in the very near future?".....exactly..so where is the dosh going to come from to pay for a replacement....I bet not from MacQuarrie....IMO there won't be a new built vessel owned by IOMSPCo instead it will lease in for say 10 years some second hand tub passing it off as something suitable for the route... Link to comment Share on other sites More sharing options...
Gladys Posted April 12, 2006 Share Posted April 12, 2006 Ok, so it will have to pass the various quality and safety standards (including the IMO, not an MF acronymn), so what's the problem? When was the last time the IOM had a purpose-built cargoe and passenger vessel? I think I can remember and it was before you were born! Link to comment Share on other sites More sharing options...
rallybug Posted April 13, 2006 Share Posted April 13, 2006 Ben My Chree up for replacement? It's only 8 years old - the Lady lasted 29 years before being sold. What makes you think the Ben will need replacement soon? Link to comment Share on other sites More sharing options...
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