Macquarie International Infrastructure Fund

[Nick]

http://info.sgx.com/webcoranncatth.nsf/V...A00356D05/$file/MIIFAPTTListing.pdf?openelement

Those who elected cash will get a further 1.04 cents dividend.

I think the additional cash is for all MIIF shareholders and not just those who elect for cash. The determination is as at the Record Date of 9 May 2013. The cash election deadline is 21 May 2013. So there's a mismatch there.

Ahh you are right.

[lonewolf]

Not that I'm complaining but I seems to have got more than the $0.44329 per share announced for electing to receive cash instead of APPT units.

To be precise $0.443484. Its not a significant difference but always nice to receive more

[weijian]

Not that I'm complaining but I seems to have got more than the $0.44329 per share announced for electing to receive cash instead of APPT units.

To be precise $0.443484. Its not a significant difference but always nice to receive more

hi lonewolf,
0.44329/share is when u only have 1000shares. Try fitting your ACTUAL number of shares in the formula (found in the offer doc) to calculate your cash/share. You should get the exact figure.

P.S. I had the same confusion until I re-open the pricing document and re-do it again...

[lonewolf]

hi lonewolf,
0.44329/share is when u only have 1000shares. Try fitting your ACTUAL number of shares in the formula (found in the offer doc) to calculate your cash/share. You should get the exact figure.

P.S. I had the same confusion until I re-open the pricing document and re-do it again...

Ah.. I get it now. The power of disregarding fractional entitlement. Yet another case of the more you own, the more you get! Thanks!

[propertyinvestor]

For those who opted for APTV units, they enjoyed an additional upside of 3c per share assuming they sold it at $1

[weijian]

Ah.. I get it now. The power of disregarding fractional entitlement. Yet another case of the more you own, the more you get! Thanks!

I thought the fair and logical way to calculate the return/share would be simply to use the lump sum from the sale of TBC divided by number of share - In this case, everyone gets their proportional fair share. I am not an expert in financial engineering and hence i do not understand whether there is a 'financial and/or mathematical' constraint during this kind of capital return+IPO exercise resulting in this 'the bigger you are, the more return you get' kind of situation.

Nonetheless, i guess it is a 'way of life' that small retail guys are always disadvantaged. I can imagine that MIMAL had this capital return structure in mind to benefit themselves (since they are 1 of the largest shareholder with slightly ~>10% stake) and also induce the rest of the big shareholders to vote for this return.

To put this into perspective, MIMAL who owns ~115mil shares (~10%) will be able to gain additional 30k with this method of distribution, rather than the 'everyone gets fair share of the pie' way. It is NOT alot when expressed as a % of the capital that they have vested, but for that 30k, MIMAL has (again) shown its greediness or simple incompetency in the eyes of the minority shareholder.

Just wondering whether anyone went to the SIAS meeting with MIMAL last monday, and spoke up about this? (i guess most VB folks already took the cash and can't be bothered to waste our time!)

[greengiraffe]

Just posted an article on Macquarie Capital - the ultimate managers of MIIF... a must read for anyone that owns APTT for important background...

[Nick]

MIIF AGREES TO SELL ENTIRE INTEREST IN MIAOLI WIND

http://info.sgx.com/webcoranncatth.nsf/V...F003EDC42/$file/MIIFMiaoliSale.pdf?openelement [SGX Announcement]

Not a significant asset but a step towards the eventual realization of its investments.

(Not Vested)

[Nick]

With the sale and listing of APTT, the crown jewel behind this mutual fund has ceased and MIIF seems to become a forgotten stock. It is currently trading at 16.9 cents and in the process of divesting its remaining 2 assets having concluded the sale of TBC and in the process of divesting MW.

MIIF Valuation of HNE: S$138 million
HNE Debt: S$380.6 million
Annualized 1Q 13 EBITDA: S$72.6 million
EV / EBITDA: 7.1

MIIF Valuation of CXP: S$107 million
CXP Debt: S$24.6 million
Annualized 1Q 13 EBITDA: S$27.2 million
EV / EBITDA: 4.9

MIIF will pay 0.7 cents dividend in 1H 2013 from TBC last distribution receipt. This implies that for shareholders to realize a 10% gain from current price, MIIF needs to divest its assets at $205 million net of fees. The key question is can this be achieved and if so, could the gains be even larger ?

(Not Vested)

[weijian]

Since Nick talked a little about the potential upside, i would like to explore on the potential downside.

- TBC was divested in the form of APTT IPO and MIIF received both total cash/equivalent units worthed ~522mil.
- Mgt had previously set a hurdle of 695mil (total divestment) to get their 15mil bonus.
- To get their 15mil bonus, Mgt just needs to sell at 695-522 = 173mil.
- After net of fees, this can be regarded as the floor price = (173 - 15)/1150 = 0.137 , or another 19% downside from last closing price.

(vested)