Macquarie International Infrastructure Fund

[Nick]

Thanks for sharing with us what transpired in that EGM. It certainly wasn't pretty and I do hope MAS would educate investors about their rights as shareholders of a company. I never knew about such a rule (5 person can demand a poll) till I chanced upon that blog posting.

[Qiaofeng]

Point 1
Well, they were paid by the management to do the work so it is unlikely that they will try their very best to uphold minority rights.
What to do? The wish of their paymaster is more important!

Point 2
In order to defeat the management, there must be some voluntary pre-EGM link up, email exchanges, appointing proxies ahead of the EGM. With enough shareholders participating, the possibility of defeating the resolutions is higher.
Kingboard Copper and Tsit Wing shareholders did that before.

On Point 1, I guess until the ecosystem understand what is the meaning of the term "independence" then IDs, Scrutineers, IFAs will always think that the paymaster is synonymous with the majority shareholders/management.
Independent has to mean allegiance to ALL shareholders NOT just the majority shareholders.
Actually, all in the AGM, EGM, i.e. "Shareholder meeting" Services biz like Boardroom etc should be clear on the difference. ALL shareholders own a stake in the company and pay for their services which requires them to act independently.
It is sad that many accept the status quo as inevitable.

On Point 2, I have the privilege (??) of experiencing both KReit Asia and Kingboard Copper EGMs.
The Kingboard Copper EGM, did not involve pre-planning amongst minority shareholders. Things just clicked. One of the prime positives was the discovery of a key Institutional shareholder amongst us (during vote count) that had a big stake (Pope Management), enuff to outvote in a poll where the majority SSH had to abstain. The situation was also more dire i.e. outright de-listing at a distressed price vs a more "fluid" rights issue in this case.As U all know, Pope actually was prepared to go to the Courts later to have their grievances heard.
Altho, I agree that pre-planning helps, I think there are structural impediments that favor the majority SSH, impromptu logistics for minority shareholders can be difficult to manage.
Kepcorp/Kepland staff were very organised and seated very strategically thru out the room. It was an EGM, they set out to win.

Hence, the call is for MAS to intervene and set things right.

[Nick]

MIIF FACT BOOK DECEMBER 2011

http://www.macquarie.com/miif/news/attac...02011F.pdf [Fact Book]

MIIF has finally addressed investor concerns about the financial performances of its 4 underlying assets by creating an asset book which contains numerous operational updates as well as financial statements (ie P&L, Cash-flow, Debt repayment profile etc) to allow prospective investors to judge the cash generating quality of the underlying assets.

MIIF has repurchased 101.111 million shares this year and will report its 2H Dividend in Feb 2011 of 2.75 cents (guided). Share price closed at 54.0 cents.

(Not Vested)

[weijian]

Finally had a chance to read into the factsheet over the holiday season. As MIIF is a dividend paying stock, i concentrated the efforts on the sustainability of their dividends. Here's my 2 cents worth:

CXP (pays ~5mil sgd/year to MIIF):
- Overall looks like the best business in the trio with regards to dividend sustainability. It is with little wonder that they werent able to buy more of this biz with their current cash hoard. A pity this is the smallest contributor to dividend payout.
- Free cash flow for CXP is comfortably higher than dividend distribution.
- 100% increase in corporate tax (cease of tax benefits) from 2012 will cause ~10% reduction in distributions.

HNE (pays ~20mil/year to MIIF):
- By buying in Nov2007, the timeframe suggests we have overpaid.
- Mgt expects growth, and future sustainability of dividend payout is tied to GROWTH. A lot of 'unexpected' events have happened in the last 3 years since accqusition which hit profits: (1) Detoll of Xinguang Expressway, (2) Authorities rule that all lorries carrying vegetables do not need to pay toll fees. Expect more to come.
- Free cash flow is roughly matched to dividend distribution.
- 100% increase in corporate tax (cease of tax benefits) from 2012 will cause ~20% reduction in distributions.
- The only savior is the 20% CAGR of vehicular ownership in Guangzhou that translated to 11% CAGR revenue growth.

TBC (pays ~34mil/year to MIIF):
- An excellent growing monopolistic business.
- Free cash flow is lower than dividend distribution over last 3years.
- Mgt hopes to re-finance in 4Q2013 and this looks like the key to maintaining its distributions.

(vested)

[Drizzt]

the bigger skeleton revealed seem to be of TBC. now we question if that is sustainable.

[Nick]

AmFraser initiated report on MIIF with a TP of 65.5 cents. Here is the link to their very comprehensive report - http://kfc1973-stock.blogspot.com/2012/0...-fund.html [Initiation Report]

Corporate Developments in 2012:

1) MIIF repurchased 7.395 million shares in 2012 so far.

2) MIIF has a new substantial shareholder in the form of Long Investment Management.

3) MIIF 4Q results will be out on 22 Feb morning.

MIIF share price is trading at 57.5 cents which gives a dividend yield of 8.7%.

(Not Vested)

[KopiKat]

I thought the share price was being supported by their Share Buy Back program, especially since it'd remained strong, despite a substantial shareholder (Abu Dhabi) having sold down their stake. Now, it looks like the buying may have been done by a new substantial sharholder, (i) LIM Advisors Limited ("LIM Advisors"), (ii) Long Investment Management International Limited ("LIMIL"), (iii) George W.Long.

Reference : SGX Annc and LIM Advisors

<Still Vested but have sold almost 2/3 of my holdings after understanding more of the risks involved from posts in this thread and started losing sleep >

[Drizzt]

wow kopikat, how big is your miif holding?

[KopiKat]

wow kopikat, how big is your miif holding?

I small-timer lah.. Got 3 lots sold 2 lots also 2/3 of my holdings mah..

Just kidding.. Big enough to make me lose sleep when I realised that the Gearing of their 3 core assets are >50% (didn't do enough homework as too lazy or busy posting useless stuff in this forum). For Infrastructure companies that provides essential services where there're no real competitors for providing the services (plus profit margin, though regulated, is almost a certainty), like Power Generation eg. SPAus, I can live with high Gearing and not lose sleep. But, in my case, not for MIIF.

[propertyinvestor]

Rio Tinto got a big shipment of minerals coming to CXP in the next few months ahead!

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[/b]

AmFraser initiated report on MIIF with a TP of 65.5 cents. Here is the link to their very comprehensive report - http://kfc1973-stock.blogspot.com/2012/0...-fund.html [Initiation Report]

Corporate Developments in 2012:

1) MIIF repurchased 7.395 million shares in 2012 so far.

2) MIIF has a new substantial shareholder in the form of Long Investment Management.

3) MIIF 4Q results will be out on 22 Feb morning.

MIIF share price is trading at 57.5 cents which gives a dividend yield of 8.7%.

(Not Vested)

Latest report by AMFraser puts MIIF at fair value of 69cents!