Date: December 20, 2012
Singapore, December 20, 2012 – President of the Securities Investors Association (Singapore) (“SIAS”), Mr David Gerald met with the Independent Chairman of Macquarie International Infrastructure Fund Limited (“MIIF”), Mr Heng Chiang Meng and Mr Oscar Ludwigson of CIMB Bank (Independent Financial Adviser to MIIF) to discuss the outcome of MIIF’s Strategic Review which was initiated in June 2012.
The Strategic Review, which included an assessment by CIMB and consultation with a cross section of shareholders, was completed on 18 December 2012. After considering the key observations and assessing the alternatives available to MIIF, the MIIF Board has concluded that in order to maximise value for MIIF’s shareholders, the strategy for MIIF should change.
The Board has been proactive in identifying and implementing strategies that are focused on maximising shareholder value. The Strategic Review was a continuation of the Board’s efforts in generating value for MIIF shareholders.
According to the Chairman Mr Heng, the initiatives announced by the Board, including the distribution of existing excess cash to shareholders as a one-off special dividend and the orderly divestment of MIIF’s interests in its infrastructure businesses, are results of careful analysis of the observations arising from the Strategic Review and assessment of the alternatives available to the MIIF.”
SIAS is pleased that MIIF took the proactive step to meet with SIAS to share with us the outcome of their Strategic Review. This allowed us to delve deeper into the initiatives that the MIIF Board has decided to undertake in order to maximise value for MIIF’s shareholders. Importantly, SIAS was able to seek clarification on various aspects of the Strategic Review including the timing for implementing the initiatives and MIIF’s dividend policy.”
According to the Board, the divestment of MIIF’s businesses involves complex processes which will take time to implement and require active management and prudent actions to safeguard the interests of MIIF shareholders. The Board takes the position that will not be rushed and has not set a timeline for the sale of these investments. The Board will keep the market appropriately informed of any material developments in relation to the initiatives identified.
SIAS notes that the change in MIIF’s strategy is a result of a thorough process undertaken by the MIIF Board and the initiatives identified are firmly centered on the objective of maximising value for shareholders. We also note that a number of the initiatives outlined by the Board will require the approval of MIIF shareholders at the appropriate time. In addition we are reassured that MIIF intends to continue paying as dividends to shareholders, the distributions it receives from its investments.”
According to Mr Heng, MIIF’s businesses have solid operating track records and each business continues to generate sustainable cash distributions which underpin MIIF’s dividend.
In conclusion, SIAS encouraged the Board to consider the timing of MIIF’s asset divestments carefully in order to achieve the best outcome for all shareholders. On behalf of SIAS, we would like to thank the Board of MIIF for its inclusive engagement with SIAS and its willingness to share relevant information with the investing public.
David Gerald
President / CEO
SIAS
