Macquarie International Infrastructure Fund to suspend trading for eight days

Macquarie International Infrastructure Fund (MIIF) plans to suspend trading of its shares for eight market days to prevent "disorderly trading".

The fund said it was concerned that investors might sell off its shares ahead of its proposed divestment and the listing of Asian Pay Television Trust (APTT).

The voluntary suspension will start on Tuesday, May 7, and end after the market closes on Thursday, May 16.

MIIF had said last month that it was considering the divestment of its 47.5 per cent interest in Taiwan Broadband Communications to the trustee-manager of APTT. APTT will then launch an initial public offering and be listed on the mainboard of the Singapore Exchange.

If the proposed divestment is completed, shareholders will receive their proportionate share of APPT units once it is listed, which is expected to be on May 29. From May 7 onwards, however, MIIF shares traded on the market will no longer carry any entitlements to APPT units.

But as Taiwan Broadband Communications currently constitutes a significant portion of MIIF's net assets, the price of MIIF shares might fall sharply once they no longer carry entitlements to APPT units, MIIF said.

"A decline in the price of MIIF shares... may create confusion in the market and result in disorderly trading by shareholders or investors who are not fully aware of the circumstances," MIIF said.