Macquarie Intl   

MIIF

SHORT on news ahh!!

 

Final Dividend 1.50 Singapore cents per ordinary share !!

 

I don't think anybody expects a special dividend. People are expecting to hear plans on what MIIF intends to do with their cash hoard ie acquisitions.

nickyng      ( Date: 23-Feb-2010 11:47) Posted: i thk unlikely tomor qtr report will announce any special dividends! SHORT this burger ahh !! :P

 

i thk unlikely tomor qtr report will announce any special dividends! SHORT this burger ahh !! :P

 

Whether the loss was written down slowly over the past 18 months or in the quarterly results, they still made a loss in their acquisition. They need more Asian assets - perhaps they might go into water plants ???

 

As of 3Q09, MEIF valuation in MIIF books of $181.4m was certainly an adjusted one cos iits valuation in 2Q09 was $214.6m. Also, NAV of MIIF in 3Q was reduced to 80c from 2Q 87c.......the write down being a contributory factory...amongst other things.

grandmaster89      ( Date: 22-Feb-2010 23:17) Posted: Their valuation of MEIF at $181.4 million is based on its last traded share price in Sept 09. It doesn't reflect the cost of its acquisition by MIIF though MIIF would have reflected the loss in fair value in its income statement.  MIIF acquired MEIF at $194.1 million (look at their website) MIIF sold MEIF at $182.4 million hence making a loss of nearly $12 million I am not sure whether it will be accounted in their Income Statement since they have already written down its fair value over the past 12 months. But the fact remains that they sold MEIF at a real loss. I think the distributions would have covered up the loss though. It was a poor acquisition though. I hope their next Asian asset will be in the TBC or HNE mould. If they get another dud like Maoli Wind, all shareholders will lose faith in MIMAL. shplayer      ( Date: 22-Feb-2010 22:24) Posted: Just relooked at the numbers. MIIF sold MEIF for a total of $132 + $50.4 = $182.4m As of 30 Sep 09 (3Q 09 result announcement), value of MEIF in their books is $181.4m So, it wasn't sold at a loss....in fact, there is a marginal gain of $1m. Anyway, that is academic.......what matters is the announcement of the 2009 FY result and final divident  on 24 Feb.....BEFORE START OF TRADING.

 

Their valuation of MEIF at $181.4 million is based on its last traded share price in Sept 09. It doesn't reflect the cost of its acquisition by MIIF though MIIF would have reflected the loss in fair value in its income statement. 

MIIF acquired MEIF at $194.1 million (look at their website)

MIIF sold MEIF at $182.4 million hence making a loss of nearly $12 million

I am not sure whether it will be accounted in their Income Statement since they have already written down its fair value over the past 12 months. But the fact remains that they sold MEIF at a real loss. I think the distributions would have covered up the loss though. It was a poor acquisition though. I hope their next Asian asset will be in the TBC or HNE mould. If they get another dud like Maoli Wind, all shareholders will lose faith in MIMAL.

shplayer      ( Date: 22-Feb-2010 22:24) Posted: Just relooked at the numbers. MIIF sold MEIF for a total of $132 + $50.4 = $182.4m As of 30 Sep 09 (3Q 09 result announcement), value of MEIF in their books is $181.4m So, it wasn't sold at a loss....in fact, there is a marginal gain of $1m. Anyway, that is academic.......what matters is the announcement of the 2009 FY result and final divident  on 24 Feb.....BEFORE START OF TRADING. grandmaster89      ( Date: 16-Feb-2010 22:54) Posted: I don't think they will pay a special dividend since they sold MEIF at a loss. Instead, they will recycle their capital to Asian infrastructure assets. This is part of MIIF's plan to become an Asian-centric fund.

 

Just relooked at the numbers.

MIIF sold MEIF for a total of $132 + $50.4 = $182.4m

As of 30 Sep 09 (3Q 09 result announcement), value of MEIF in their books is $181.4m

So, it wasn't sold at a loss....in fact, there is a marginal gain of $1m.

Anyway, that is academic.......what matters is the announcement of the 2009 FY result and final divident  on 24 Feb.....BEFORE START OF TRADING.

grandmaster89      ( Date: 16-Feb-2010 22:54) Posted: I don't think they will pay a special dividend since they sold MEIF at a loss. Instead, they will recycle their capital to Asian infrastructure assets. This is part of MIIF's plan to become an Asian-centric fund. shplayer      ( Date: 16-Feb-2010 22:39) Posted: MIIF plans to divest CAC (Canadian Aged Care) thru IPO. http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_841C437CC9ACF1BE482576C70038E22C/$file/MIIFCACSale.pdf?openelement If IPO goes thru, => more cash => more divident?

 

wah!! pending IPO oni niah....share up so much?abit over reacted rite ? :P

 

A nominal special dividend might be given. HNE's contribution will contribute to 1 cent worth of 2H dividend. Arqiva will distribute nothing. Dividend should be between 1.5 - 2 cents. 

I attended their analyst briefing for 1H 09 and their CEO mentioned that the Fund intends to divest all of their European asset and buy Asian assets instead. They intended to do so in 2008 but the crisis derailed their plans. Looks like they only have to sell Arqiva now.

 

Perhaps and perhaps not........the answer to this will be known on 24 Feb.

grandmaster89      ( Date: 16-Feb-2010 22:54) Posted: I don't think they will pay a special dividend since they sold MEIF at a loss. Instead, they will recycle their capital to Asian infrastructure assets. This is part of MIIF's plan to become an Asian-centric fund. shplayer      ( Date: 16-Feb-2010 22:39) Posted: MIIF plans to divest CAC (Canadian Aged Care) thru IPO. http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_841C437CC9ACF1BE482576C70038E22C/$file/MIIFCACSale.pdf?openelement If IPO goes thru, => more cash => more divident?

 

I don't think they will pay a special dividend since they sold MEIF at a loss. Instead, they will recycle their capital to Asian infrastructure assets. This is part of MIIF's plan to become an Asian-centric fund.

shplayer      ( Date: 16-Feb-2010 22:39) Posted: MIIF plans to divest CAC (Canadian Aged Care) thru IPO. http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_841C437CC9ACF1BE482576C70038E22C/$file/MIIFCACSale.pdf?openelement If IPO goes thru, => more cash => more divident?

 

MIIF plans to divest CAC (Canadian Aged Care) thru IPO.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_841C437CC9ACF1BE482576C70038E22C/$file/MIIFCACSale.pdf?openelement

If IPO goes thru, => more cash => more divident?

 

Yep, you are right!

Picture will be clearer on 24 Feb........2 mths away.

 

Precisely, this is why I feel there is little upsides to the share price unless they can sell Arqiva or increase their distributions by using the cash from MEIF to buy high yielding Asian assets.

 

Its already being punished by the mkt.....trading at about 50% disc to NAV.

grandmaster89      ( Date: 21-Dec-2009 00:02) Posted: Arqiva has good reasons to suspend distributions as they need to refinance in 2012 plus they require additional 500mil pounds for capex.  But as a MIIF investor, you are losing a substantial portion of distribution income. John Stuart already stated that if an offer comes to him, he will sell Arqiva. The share price is determined by its current yield (which is around 7%) and not by its possible future yield or NAV value.  If any of the local REITs announced that 1/4 of their properties will stop giving rental distribution to her, shareholders will be in arms. MIIF is lucky that her shareholders are very understanding (based on the July AGM).

 

Arqiva has good reasons to suspend distributions as they need to refinance in 2012 plus they require additional 500mil pounds for capex. 

But as a MIIF investor, you are losing a substantial portion of distribution income. John Stuart already stated that if an offer comes to him, he will sell Arqiva. The share price is determined by its current yield (which is around 7%) and not by its possible future yield or NAV value. 

If any of the local REITs announced that 1/4 of their properties will stop giving rental distribution to her, shareholders will be in arms. MIIF is lucky that her shareholders are very understanding (based on the July AGM).

 

Aquiva suspension of div is out of prudence.....to conserve cash for major debt restructuring in 2014. Its business is still growing....revenue growth, EBITA are up. Revenue stream will remain strong due to long term contracts.......which will bode well when they negotiate their debt renewal in a couple of years. So, short term, non div,  MIIF market price may be affected by low yield......but high disc to NAV.....so, not so good for yield focused investors but may attract value focused investors.

On the other hand, MW revene is falling.....EBITA also down.....gearing at 84%.......100% owned, equity accounted to MIIF (tarnishes its BS)......although its a small investment, outlook is a concern....... ....anyway, good thing is liabilities is non recourse to MIIF.

 

Maoli Wind is the least of their problem. Their largest investment, Arqiva, will most likely suspend dividends till 2012. Imagine that, MIIF largest investment and no income from it haha!

shplayer      ( Date: 20-Dec-2009 22:59) Posted: Yeah, they need a 'wind of change' ....or is it 'wind to change'? to resolve this mess. Perhaps, worst case scenerio, if MW is not viable, MIIF can just let it go into receivership and write off the $16m in its books....cos MW liabilities are non recourse to MIIF.....

 

Yeah, they need a 'wind of change' ....or is it 'wind to change'? to resolve this mess.

Perhaps, worst case scenerio, if MW is not viable, MIIF can just let it go into receivership and write off the $16m in its books....cos MW liabilities are non recourse to MIIF.....

 

Possible IF someone is willing to buy. The buyer not only has to fork out $1, he has to find funds or use Maoli Wind tiny cash flow to pay down Maoli Wind's $89mil debt. As to the former, I don't think anyone in the right mind will pay $90mil for Maoli Wind and to the latter, the investor will not see any cash flow diverted to him since all is gone to the debts.