Macquarie International Infrastructure Fund (MIIF) rose the most in more than three months on plans to list cable television operator Taiwan Broadband Communications Co. on the Singapore stock exchange.
The shares gained as much as 4.4 percent to 60 Singapore cents, set for the biggest increase since Dec. 18, and traded at 58.5 Singapore cents as of 10:58 a.m. in Singapore. The stock sale comes as it considers divesting its 47.5 percent stake in Taiwan Broadband to the trustee manager of Asian Pay Television Trust, which has obtained a preliminary approval to list on the Singapore bourse, it said.
Macquarie Group Ltd. (MQG) said in December it plans to shut the Singapore-listed infrastructure fund after selling assets including a port and highway in China because it doesn’t expect its share price to reflect the value of its holdings. The fund said today it’s seeking at least 40.8 Singapore cents a share through its listing, valuing the stake at a minimum of S$470 million ($380 million), it said in the statement.
“This is a positive step in the fund’s strategy to unlock shareholder value,” said Liu Jin Shu, an analyst with SIAS Research Pte. in Singapore. “The question is how high the IPO price they will get.”
Australia’s biggest investment bank decided to shut the fund, which started in 2005, after it couldn’t find good assets in Asia or means to boost its share price, Chairman Chiang Meng Heng said in an interview on Dec. 18.
The divestment “substantially alters the focus of Macquarie International Infrastructure Fund and, if successfully implemented, would lead to the winding down” of the fund, the Macquarie fund said in a statement to the stock exchange today, adding it has no plans for further acquisitions.
The fund is trading at a 16 percent discount to its net asset value as of Dec. 31, according to data compiled by Bloomberg.
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