Why the Infratil (ASX:IFT) share price rocketed 21% higher today

The Infratil Ltd (ASX:IFT) share price was among the best performers on the market today and jumped a massive 21% higher…

| More on:
rocketing asx share price represented by man riding golden dollar sign speeding through clouds

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the best performers on the Australian share market on Tuesday was the Infratil Ltd (ASX: IFT) share price.

The New Zealand-based infrastructure investment company's shares rocketed 21% higher before being hurriedly placed into a trading halt shortly before the market close.

This means the Infratil share price ended the day at a record high of $6.80.

Why was the Infratil share price rocketing higher?

It appears as though Link Administration Holdings Ltd (ASX: LNK) isn't the only company receiving a takeover approach today.

Investors were buying Infratil's shares this afternoon amid reports that one of Australia's leading superannuation funds has made a takeover approach for the dual-listed company.

According to the AFR, AustralianSuper says it has submitted a proposal to acquire all the shares in the dual-listed company.

Australia's largest superannuation fund has tabled an offer of NZ$7.43 a share or NZ$5.37 billion (A$5.09 billion) to acquire the company.

The report advises that AustralianSuper's offer consists of a cash consideration of NZ$5.79 a share and 0.221 of a Trustpower share per Infratil share.

Based on the current Infratil share price of NZ$6.08 (on the NZX), this offer represents a 22.2% premium.

AustralianSuper has apparently said that it would continue to seek engagement with the Infratil board to give its shareholders the opportunity to assess the proposal in full.

What now?

As things stand, Infratil is yet to comment on the takeover approach or confirm its receipt. This is likely to come tomorrow morning before the market reopens.

One thing that is for sure, though, is that AustralianSuper cannot be accused of making an opportunistic approach.

Even prior to today's jump, the Infratil share price was up a sizeable 13.5% since the start of the year and trading within a whisker of its record high.

The superannuation fund appears to see long term value in the company and is prepared to pay a premium to get it.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a happy end to the trading week this Friday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA shares top $170. Where to now?

Another day, another record high for CBA shares.

Read more »

Two people jump and high five above a city skyline.
Share Gainers

Why these 5 ASX 200 stocks are racing higher this week

It’s been a stellar week for these five ASX 200 stocks. But why?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Appen, Aspen, Catalyst Metals, and Core Lithium shares are racing higher today

Let's see why these shares are roaring higher today and ending the week on a high.

Read more »