Macquarie International Infrastructure Fund

[Nick]

OUTCOME OF STRATEGIC REVIEW

As a result, the Board has decided to undertake the following initiatives:

- Distribute existing excess cash to shareholders as a one-off special dividend;
- Commence a joint process with Macquarie Korea Opportunities Fund (MKOF), MIIF’s TBC co-shareholder, to realise maximum value for their investment in TBC;
- Pursue the orderly divestments of MIIF’s interests in HNE, CXP and Miaoli Wind;
- Distribute proceeds from any divestment to shareholders as soon as practicable; and
- Allow MIIF’s corporate-level debt facility to lapse upon maturity.

These initiatives have been formulated with a focus on maximising and returning value to MIIF shareholders. The Board will endeavour to execute these initiatives in a timely manner; however, these initiatives involve complex processes which will require active management and prudent actions to safeguard the interests of MIIF shareholders.

http://info.sgx.com/webcoranncatth.nsf/V...7005F51B0/$file/MIIFOutcomeStrategicReview181212.pdf?openelement [SGX Announcement]

Fairly surprised that they intend to liquidate the fund steadily and return capital to shareholders. It will not be easy divesting some of the assets quickly due to its size and regulatory control. The Management fees will also be structured. Shareholders seems to like this outcome and the share price has surged to 62.0 cents.

(Not Vested)

[greengiraffe]

Strangely they have yet to reveal how much special dividends they are going pay and when.

Moreover, the intended divestments of HNE, CXP and Miaoli will be tough given the tough operating conditions facing each assets.

HNE's new toll structure has rendered it unattractive relative to those toll roads under CM Pac (basically Macquarie IMO has been taken for a ride and they lack the Chinese connections) and hence selling it will be difficult unless a huge loss is realised in the process.

CXP should be fine as Pan United will stand ready to buy it back at a good price.

OUTCOME OF STRATEGIC REVIEW

As a result, the Board has decided to undertake the following initiatives:

- Distribute existing excess cash to shareholders as a one-off special dividend;
- Commence a joint process with Macquarie Korea Opportunities Fund (MKOF), MIIF’s TBC co-shareholder, to realise maximum value for their investment in TBC;
- Pursue the orderly divestments of MIIF’s interests in HNE, CXP and Miaoli Wind;
- Distribute proceeds from any divestment to shareholders as soon as practicable; and
- Allow MIIF’s corporate-level debt facility to lapse upon maturity.

These initiatives have been formulated with a focus on maximising and returning value to MIIF shareholders. The Board will endeavour to execute these initiatives in a timely manner; however, these initiatives involve complex processes which will require active management and prudent actions to safeguard the interests of MIIF shareholders.

http://info.sgx.com/webcoranncatth.nsf/V...7005F51B0/$file/MIIFOutcomeStrategicReview181212.pdf?openelement [SGX Announcement]

Fairly surprised that they intend to liquidate the fund steadily and return capital to shareholders. It will not be easy divesting some of the assets quickly due to its size and regulatory control. The Management fees will also be structured. Shareholders seems to like this outcome and the share price has surged to 62.0 cents.

(Not Vested)

[pianist]

why do they wanna divest cxp?

[Nick]

Strangely they have yet to reveal how much special dividends they are going pay and when.

Moreover, the intended divestments of HNE, CXP and Miaoli will be tough given the tough operating conditions facing each assets.

HNE's new toll structure has rendered it unattractive relative to those toll roads under CM Pac (basically Macquarie IMO has been taken for a ride and they lack the Chinese connections) and hence selling it will be difficult unless a huge loss is realised in the process.

CXP should be fine as Pan United will stand ready to buy it back at a good price.

OUTCOME OF STRATEGIC REVIEW

As a result, the Board has decided to undertake the following initiatives:

- Distribute existing excess cash to shareholders as a one-off special dividend;
- Commence a joint process with Macquarie Korea Opportunities Fund (MKOF), MIIF’s TBC co-shareholder, to realise maximum value for their investment in TBC;
- Pursue the orderly divestments of MIIF’s interests in HNE, CXP and Miaoli Wind;
- Distribute proceeds from any divestment to shareholders as soon as practicable; and
- Allow MIIF’s corporate-level debt facility to lapse upon maturity.

These initiatives have been formulated with a focus on maximising and returning value to MIIF shareholders. The Board will endeavour to execute these initiatives in a timely manner; however, these initiatives involve complex processes which will require active management and prudent actions to safeguard the interests of MIIF shareholders.

http://info.sgx.com/webcoranncatth.nsf/V...7005F51B0/$file/MIIFOutcomeStrategicReview181212.pdf?openelement [SGX Announcement]

Fairly surprised that they intend to liquidate the fund steadily and return capital to shareholders. It will not be easy divesting some of the assets quickly due to its size and regulatory control. The Management fees will also be structured. Shareholders seems to like this outcome and the share price has surged to 62.0 cents.

(Not Vested)

I think they wrote down the fair valuation of HNE in the previous quarter.

[weijian]

*How much it may distribute:
(1) There is currently ~7cents/share of cash on the books. Taking away liabilities, it will be ~6cents/share.
(2) Looking at cash distribution of the assets, only TBC will be making a payment in March 2013 and using March 2012 as a guideline, that adds ~24mil - 5 (estimated mgt fees) = 19mil or 1.5cts/share.

Add (1) and (2) and we may be talking about 7.5cents/share of special+final dividend by April2013 next year. Take this sum away from today's closing price and you will realize the share price appreciation since the strategic review announcement is about the same quantum...


*HNE's valuation
Based on 3Q2012 financial statements, HNE was revalued -75mil (30%) from 244mil, and ended the qtr at 140mil (there were another 28mil of reductions due to received income/foreign exchange effects).

The 30% reduction corresponds to the same number of the expected reduction in toll revenue as stated previously. Is this priced attractively for someone to buy at book value?


*Why sell CXP?
From the way the PR was worded and other accompanying actions like termination of corporate debt fac (no more new assets=no more new mgt fees) and re-structuring of manager's fees (less mgt fees), it seems like the fund should be winding up.

[Nick]

MIIF could distribute $0.262 per share: SIAS

Macquarie International Infrastructure Fund’s (M41.SG) strategic plan is a move to divest its portfolio’s smaller investments and return proceeds and excess cash to shareholders, with the fund focusing on a single core business, Taiwan Broadband Communications, SIAS Research says.

“This move comes at an appropriate time where the market is searching for yield.” It expects MIIF may issue new shares to Macquarie Korea Opportunities Fund for its TBC stake to take full ownership, or that both entities could sell their stakes together.

SIAS estimates MIIF’s excess cash at around $60 million, while the sale of stakes in Hua Nan Expressway, Changshu Xinghua Port and Miaoli Wind could improve distributable cash by $102 million, $140 million and $1 million respectively; it estimates total distributable cash at around $303 million, or 26.2 cents a share.

It now values MIIF at $0.71; it rates the stock at Invest. The stock is up 5.1% at $0.62.

http://kfc1973-stock.blogspot.sg/2012/12...share.html [Article]

Considering the wording use to describe the planned line of action with regards to TBC in yesterday announcement, this would certainly make sense. Coupled with plans to restructure MIIF and the Management fees, we could see MIIF transforming itself into a pureplay TBC operator ???

(Not Vested)

[Louhan]

Finally the Board of Directors are doing something to prop up the share price.

OUTCOME OF STRATEGIC REVIEW

As a result, the Board has decided to undertake the following initiatives:

- Distribute existing excess cash to shareholders as a one-off special dividend;
- Commence a joint process with Macquarie Korea Opportunities Fund (MKOF), MIIF’s TBC co-shareholder, to realise maximum value for their investment in TBC;
- Pursue the orderly divestments of MIIF’s interests in HNE, CXP and Miaoli Wind;
- Distribute proceeds from any divestment to shareholders as soon as practicable; and
- Allow MIIF’s corporate-level debt facility to lapse upon maturity.

These initiatives have been formulated with a focus on maximising and returning value to MIIF shareholders. The Board will endeavour to execute these initiatives in a timely manner; however, these initiatives involve complex processes which will require active management and prudent actions to safeguard the interests of MIIF shareholders.

http://info.sgx.com/webcoranncatth.nsf/V...7005F51B0/$file/MIIFOutcomeStrategicReview181212.pdf?openelement [SGX Announcement]

Fairly surprised that they intend to liquidate the fund steadily and return capital to shareholders. It will not be easy divesting some of the assets quickly due to its size and regulatory control. The Management fees will also be structured. Shareholders seems to like this outcome and the share price has surged to 62.0 cents.

(Not Vested)

[Temperament]

MIIF could distribute $0.262 per share: SIAS???
It better come true or else.....?
Vested.

[Nick]

There is a report from Macquarie Research on MIIF latest corporate development:

http://kfc1973-stock.blogspot.sg/2012/12...-macq.html

MIIF closed at 62.0 cents yesterday.

(Not Vested)

[Nick]

Am Fraser has written a short report titled - Unearthing the treasure chest

http://www.remisiers.org/cms_images/rese...130108.pdf

MIIF closed at 62.5 cents and Am Fraser speculates that 2H 12 dividend will be 6.75 cents (including 4.0 cents excess cash distribution).

(Not Vested)