Asian Pay Television Trust (APTT)

The preliminary prospectus it out -

http://masnet.mas.gov.sg/opera/sdrprosp....F002426A1/$File/2.3.1%20-%20Asian%20Pay%20Television%20Trust%20Preliminary%20Prospectus.pdf

This is the asset which MIIF originally had a 47.5% stake in. It is projected to pay a dividend of 8.25% yield in FY 2014.

(Not vested in MIIF or APTT)

I got a autographed cert in MIIF - am wondering if I will get a cert for the new spinoff if MIIF holders are allowed to subscribe.

Anyway, the Abe retail trust and APTV reminds me of Religare. Only difference is the environment now that is yield crazy...

Will see how they fare but I will skip APTV due to my experience with MIIF.

GG

(02-05-2013, 07:36 PM)Nick Wrote: The preliminary prospectus it out -

http://masnet.mas.gov.sg/opera/sdrprosp....F002426A1/$File/2.3.1%20-%20Asian%20Pay%20Television%20Trust%20Preliminary%20Prospectus.pdf

This is the asset which MIIF originally had a 47.5% stake in. It is projected to pay a dividend of 8.25% yield in FY 2014.

(Not vested in MIIF or APTT)

(02-05-2013, 07:42 PM)greengiraffe Wrote: I got a autographed cert in MIIF - am wondering if I will get a cert for the new spinoff if MIIF holders are allowed to subscribe.

Anyway, the Abe retail trust and APTV reminds me of Religare. Only difference is the environment now that is yield crazy...

Will see how they fare but I will skip APTV due to my experience with MIIF.

GG

(02-05-2013, 07:36 PM)Nick Wrote: The preliminary prospectus it out -

http://masnet.mas.gov.sg/opera/sdrprosp....F002426A1/$File/2.3.1%20-%20Asian%20Pay%20Television%20Trust%20Preliminary%20Prospectus.pdf

This is the asset which MIIF originally had a 47.5% stake in. It is projected to pay a dividend of 8.25% yield in FY 2014.

(Not vested in MIIF or APTT)

As a MIIF shareholder, you can choose to receive the sale proceeds as cash OR units in APTT.

http://info.sgx.com/webcoranncatth.nsf/V...D003DC40D/$file/MIIFAPTTBCD300413.pdf?openelement

(02-05-2013, 07:44 PM)Nick Wrote:

(02-05-2013, 07:42 PM)greengiraffe Wrote: I got a autographed cert in MIIF - am wondering if I will get a cert for the new spinoff if MIIF holders are allowed to subscribe.

Anyway, the Abe retail trust and APTV reminds me of Religare. Only difference is the environment now that is yield crazy...

Will see how they fare but I will skip APTV due to my experience with MIIF.

GG

(02-05-2013, 07:36 PM)Nick Wrote: The preliminary prospectus it out -

http://masnet.mas.gov.sg/opera/sdrprosp....F002426A1/$File/2.3.1%20-%20Asian%20Pay%20Television%20Trust%20Preliminary%20Prospectus.pdf

This is the asset which MIIF originally had a 47.5% stake in. It is projected to pay a dividend of 8.25% yield in FY 2014.

(Not vested in MIIF or APTT)

As a MIIF shareholder, you can choose to receive the sale proceeds as cash OR units in APTT.

http://info.sgx.com/webcoranncatth.nsf/V...D003DC40D/$file/MIIFAPTTBCD300413.pdf?openelement

Thanks will opt for APTT to see what is happening.

GG

I'm opting for cash. Even though its likely that with the proposed payout, my MIIF shares are fully paid out by the dividends received.

> I'm opting for cash. Even though its likely that with the proposed payout, my MIIF shares are fully paid out by the dividends received.

Smart move...

Anyone care to share their view on this IPO? Is it worth subscribing or not? I understand the IPO price is $1?

Price: $1.00
Expected Yield: 7.29% (FY13) 8.25% (FY14)
Date and time Event
16 May 2013 : Price Determination Date (subject to change).
17 May 2013, 9 a.m. : Opening date and time for the Public Offer.
27 May 2013, 12 noon : Closing date and time for the Public Offer.
29 May 2013, 2.00 p.m. : Commence trading on a “ready” basis.


Overview

Asian Pay Television is a newly constituted Registered Business Trust formed to acquire its initial
asset, the TBC Group. The TBC Group is Taiwan’s third-largest cable TV operator, with more than
751,000 Basic Cable TV RGUs as at 31 December 2012. The TBC Group is a leading, integrated
cable operator in Taiwan that generates stable cash flows and has an attractive growth profile. The
TBC Group operates exclusively in Taiwan, where it offers Basic Cable TV, Premium Digital Cable
TV and Broadband services to households and businesses in five closely clustered and heavily
populated franchise areas in northern and central Taiwan.

My View:

The fundamentals are no good as the business has been making losses over the last 3 years due to the high cost of debt.

Pay TV is a dying business as consumers are getting smarter by watching whatever videos they want from online directly. Even my mom who is 63 this year knows how to watch free streaming of her favorite Hong Kong dramas online.

Croesus Retail Trust seems like a much better deal with its 8% yield. I mentioned it a few days ago at
http://stockbrokerplayspoker.blogspot.sg...trust.html

I do no see much upside on the 1st trading day. To make this really attractive, investors would really like to be paid 8% to 10% yield.

Are we really that hungry for yield?

Well I think so

Best regards,
Felix Leong
aka pipi486

The business has been restructured and you should look at the pro forma financial statement to see the profit. The previous capital structure looks too scary with gearing of 3x though that included some loan from miif

Going through the prospectus, I am highlighted to the fact that it is an extremely regulated industry and hence an understanding of the relationship between cable operator, the regulator and the public will be crucial.

For e.g, NCC has just submitted a proposal to amend the current CRTA.
1) reduce the minimum network coverage requirement for a new entrant to obtain a license from 30.0% to 15.0%;
2) reduce the minimum network coverage requirement for a new entrant in a franchise area for a period of three years following the launch of commercial services from 100.0% to 50.0%; and
3) remove system operators’ right to broadcast local advertising.

Current legislation will be like forbidding anyone from owning more than 1/3 of the national subscriver.

Following rezoning of franchise area, there are also other operators who are applying for license to cover TBC Group’s franchise areas, including Taichung City.

In addition, there's even a cap rate on the fees that operator can charge. The NCC impose a cap rate of NT$600 for the whole nation and the local government is allowed to impose a cap rate that is lower than the NCC's cap rate. In 2011 and 2013, 4 of TBC's franchise suffered a cut of NT$10 and NT$15. Currently, all TBC's franchise charged at the maximum cap rate.

There's also the covenant term in the prospectus where they seemed to get stricter after a certain number of years.
"Gross debt/EBITDA ratio not exceeding 5.75 times for the initial four quarters, gradually stepping down to 3.0 times after the sixth year;"

With an EBITDA of $200 million, it seemed like TBC might have to do a right issue near the sixth year. There's also the interest coverage ratio and debt service coverage ratio which I did not calculate.

Lastly, the base fee seemed interestingly structured at a fixed fee of $7 million and will increase each year according to the percentage increase in Singapore's CPI.

(02-05-2013, 07:42 PM)greengiraffe Wrote: I got a autographed cert in MIIF - am wondering if I will get a cert for the new spinoff if MIIF holders are allowed to subscribe.

Anyway, the Abe retail trust and APTV reminds me of Religare. Only difference is the environment now that is yield crazy...

Will see how they fare but I will skip APTV due to my experience with MIIF.

GG

(02-05-2013, 07:36 PM)Nick Wrote: The preliminary prospectus it out -

http://masnet.mas.gov.sg/opera/sdrprosp....F002426A1/$File/2.3.1%20-%20Asian%20Pay%20Television%20Trust%20Preliminary%20Prospectus.pdf

This is the asset which MIIF originally had a 47.5% stake in. It is projected to pay a dividend of 8.25% yield in FY 2014.

(Not vested in MIIF or APTT)

Hi, care to elaborate more on your experience with MIIF? negative expereince I presume?

---

(02-05-2013, 09:58 PM)felixleong Wrote: Price: $1.00
Expected Yield: 7.29% (FY13) 8.25% (FY14)
Date and time Event
16 May 2013 : Price Determination Date (subject to change).
17 May 2013, 9 a.m. : Opening date and time for the Public Offer.
27 May 2013, 12 noon : Closing date and time for the Public Offer.
29 May 2013, 2.00 p.m. : Commence trading on a “ready” basis.


Overview

Asian Pay Television is a newly constituted Registered Business Trust formed to acquire its initial
asset, the TBC Group. The TBC Group is Taiwan’s third-largest cable TV operator, with more than
751,000 Basic Cable TV RGUs as at 31 December 2012. The TBC Group is a leading, integrated
cable operator in Taiwan that generates stable cash flows and has an attractive growth profile. The
TBC Group operates exclusively in Taiwan, where it offers Basic Cable TV, Premium Digital Cable
TV and Broadband services to households and businesses in five closely clustered and heavily
populated franchise areas in northern and central Taiwan.

My View:

The fundamentals are no good as the business has been making losses over the last 3 years due to the high cost of debt.

Pay TV is a dying business as consumers are getting smarter by watching whatever videos they want from online directly. Even my mom who is 63 this year knows how to watch free streaming of her favorite Hong Kong dramas online.

Croesus Retail Trust seems like a much better deal with its 8% yield. I mentioned it a few days ago at
http://stockbrokerplayspoker.blogspot.sg...trust.html

I do no see much upside on the 1st trading day. To make this really attractive, investors would really like to be paid 8% to 10% yield.

Are we really that hungry for yield?

Well I think so

Best regards,
Felix Leong
aka pipi486

Hi Felix, I share your view on this IPO too. If it is such a good and profitable business, why would they not keep the golden goose for themselves? Other than regulatory risks, their moat is not deep, being the number 3 player in Taiwan and with fierce competition, hmm.....