After the completion of the Strategic Review which was initiated in June, the board of Macquarie International Infrastructure Fund has concluded that in order to maximise value for shareholders the strategy for MIIF should change.
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 Taiwan Broadband Communications (TBC);
• Pursue the orderly divestments of MIIF’s interests in Hua Nan Expressway (HNE), Changshu Xinghua Port (CXP) and Miaoli Wind;
• Distribute the proceeds from any divestment to shareholders as soon as practicable; and
• Allow MIIF’s corporate-level debt facility to lapse upon maturity.
The strategic review, which included an assessment by CIMB Bank Berhad, Singapore Branch (CIMB) and consultation with a cross section of shareholders, generated the following key observations:
• MIIF’s current share price does not adequately reflect the value of MIIF’s infrastructure businesses;
• MIIF’s current structure may not be the most appropriate structure to reflect the value of its businesses;
• TBC, CXP and HNE are each generating sustainable cash distributions which underpin their respective values; and
• Executing MIIF’s stated strategy of investing directly in operating Asian infrastructure businesses is constrained by MIIF’s current share price and the prevailing market environment.
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