SINGAPORE - Mainboard-listed Macquarie International Infrastructure Fund (MIIF) announced on Friday that it has agreed to sell its 81 per cent effective interest in Hua Nan Expressway for $110 million in cash, after which it will delist from the Singapore Exchange (SGX) and wind up.
The proposed divestment to Topwise Consultants Ltd, an existing shareholder in Hua Nan Expressway, is subject to MIIF shareholders' approval at a special general meeting to be convened.
MIIF intends to distribute the net proceeds and any residual cash following the settlement of its liabilities to shareholders by way of a redemption of ordinary shares in the capital of MIIF. It said the total proceeds to be distributed to shareholders following the proposed divestment are expected to be approximately 8.25 cents per share.
The proposed divestment is in line with the strategy to maximise returns to shareholders as announced by MIIF's board in December 2012 and endorsed by shareholders in March 2013. The pursuit of this strategy has resulted in the divestments of MIIF's interests in Taiwan Broadband Communications, Changshu Xinghua Port and Miaoli Wind, and the distribution of proceeds from these divestments to shareholders.
Upon completion of its last divestment, MIIF would have delivered total net proceeds of approximately 66.4 cents per share to shareholders, 24 per cent higher than MIIF's share price of 53.5 cents per share when the review of MIIF's strategy was first announced in October 2012.
MIIF also distributed a total of 5.15 Singapore cps of ordinary dividends from October 2012 to date, thereby delivering a total return of 33.6 per cent to shareholders, it said.
The MIIF board has engaged KPMG Corporate Finance to act as an independent financial adviser to opine on the fairness and reasonableness of the transaction. KPMG's opinion would form part of the circular to be issued to shareholders in due course.