Macquarie International Infrastructure Fund

[KopiKat]

THE PROPOSED DIVESTMENT OF TAIWAN BROADBAND COMMUNICATIONS AND THE PROPOSED OFFERING AND LISTING OF ASIAN PAY TELEVISION TRUST

[Temperament]

If the IPO listing on SGX is successful as "APTT", shall we opt for cash of $0.408 (aka is value correct?) or shares?
It seems that after listing as "APTT" , the mother company is still "Macqurie Group limited? So mother likes this child very much? Why?
Vested leh!

[Drizzt]

hi uncle temperament,

my thoughts on this here > http://www.investmentmoats.com/money-man...rust-aptt/

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the key thing is that the sell price is less than purchase price. and that potential acquirers actually value them as less than that.

its either miif overpaid last time, people dont realize the value or that the prospect of TBC isnt really that good.

folks familiar with Taiwan may value add here.

[Temperament]

hi uncle temperament,

my thoughts on this here > http://www.investmentmoats.com/money-man...rust-aptt/

---

the key thing is that the sell price is less than purchase price. and that potential acquirers actually value them as less than that.

its either miif overpaid last time, people dont realize the value or that the prospect of TBC isnt really that good.

folks familiar with Taiwan may value add here.

Ya lol! if listing successful still Under Macquarie Group limited. And why no private buyer if TBC is value for money?
Thanks Drizzt.

[Drizzt]

i am always under the impression tbc is a pretty good asset. the ebitda is consistent. its the financial engineering that poses more problem

but anyone in taiwan know if satellite tv is more popular

[Nick]

Proposed Minimum Disposal Price: $469.5 million (this is after transaction cost and 31 Dec 2012 valuation is $494.2 million)
Proportionate Debt: $473.5 million
EV: $943 million
Gearing: 50.2%
EBITDA: $93.4 million
EV / EBITDA: 10.1x

(Not Vested)

[egghead]

I'm more interested to know what price they will sell CXP - vested in PUC.

[weijian]

the key thing is that the sell price is less than purchase price. and that potential acquirers actually value them as less than that.

its either miif overpaid last time, people dont realize the value or that the prospect of TBC isnt really that good.

Without any consideration of the quality of the asset and who got the valuation right/wrong, it can also be argued that buyers are also suffering from "anchoring bias" - Do note that MIIF is listed and TBC's valuations are updated on a quarterly basis. Therefore, a potential buyer's soliciting price can be affected by the knowledge of the valuation price in the results report, and there is the 'human bargaining tendency' to offer something below that.

But it does seem to indicate that the dim shareholder's hope of getting richer valuations from TBC (to compensate for potential lower valuations from CXP/HNE) are getting distant.......

---

If the IPO listing on SGX is successful as "APTT", shall we opt for cash of $0.408 (aka is value correct?) or shares?

Looking at how some of the business trusts are performing and those that have delayed their IPOs (eg. Reliance's underwater cables), a MIIF investor who wants to continue to have their TBC fix, might be better off if they take the cash and subsequently wait for a better price after IPO....

[Temperament]

the key thing is that the sell price is less than purchase price. and that potential acquirers actually value them as less than that.

its either miif overpaid last time, people dont realize the value or that the prospect of TBC isnt really that good.

Without any consideration of the quality of the asset and who got the valuation right/wrong, it can also be argued that buyers are also suffering from "anchoring bias" - Do note that MIIF is listed and TBC's valuations are updated on a quarterly basis. Therefore, a potential buyer's soliciting price can be affected by the knowledge of the valuation price in the results report, and there is the 'human bargaining tendency' to offer something below that.

But it does seem to indicate that the dim shareholder's hope of getting richer valuations from TBC (to compensate for potential lower valuations from CXP/HNE) are getting distant.......

---

If the IPO listing on SGX is successful as "APTT", shall we opt for cash of $0.408 (aka is value correct?) or shares?

Looking at how some of the business trusts are performing and those that have delayed their IPOs (eg. Reliance's underwater cables), a MIIF investor who wants to continue to have their TBC fix, might be better off if they take the cash and subsequently wait for a better price after IPO....

Maybe half cash, half shares? May be possible. But i think i will take cash 1st, talk later.

[Nick]

Greater Execution Certainty

Any divestment which involves a change of control of TBC, including a trade sale, would require formal approvals from the Taiwanese regulatory authorities.

The Proposed Divestment would not require formal approvals from the Taiwan regulatory authorities as there is no change of control or owner of TBC, given the Trustee-Manager of APTT will continue to be a wholly-owned subsidiary of Macquarie Group Limited and Macquarie Group Limited will continue to hold an investment in TBC through APTT. As a result, the Proposed Divestment is expected to provide Shareholders with greater execution certainty.

http://info.sgx.com/webcoranncatth.nsf/V...600434E34/$file/MIIFSGMCircular08042013.pdf?openelement [MIIF SGM Circular]

(Not Vested)