MIG - Macquarie Infrastructure Group

[bucket183]

What happened to MIG this morning??

 

[skyQuake]

DJ MARKET TALK: MIG Down 5.5% After Large Holder Sells At A$1.40

0014 GMT [Dow Jones] Macquarie Infrastructure (MIG.AU) down 8.5 cents or 5.5% at
A$1.455 after its second largest shareholder behind Macquarie Group (MQG.AU),
Canada's Ontario Teachers' Pension Plan Board sells its stake according to a
number of traders, as 244.7 million securities, representing 10.8% of issued capital,
crossed at A$1.40 each before trading Friday. Traders say JPMorgan ran institutional
bookbuild with floor price of A$1.40 but sale by OTPP, a major investor in Australian
infrastructure which also holds 12.2% of Transurban (TCL.AU) and last month agreed to buy
35.5% of Bristol Airport from MAp (MAP.AU), may suggest Canada's largest private
pension fund not happy with expected proposal to split assets into 2 companies, or could
reflect satisfaction with AUD at 15 month high against CAD.(WEL)

 

[communique]

Anyone have any thoughts on the MIG restructure proposal? What do you think about INTOLL and MQA? Is this a good or bad thing for the share price?

 

[nulla nulla]

Anyone have any thoughts on the MIG restructure proposal? What do you think about INTOLL and MQA? Is this a good or bad thing for the share price?

I hold so I may be biased. In fact I cashed out 500 nab shares in my smsf today to purchase 10,000 mig at $1.335. If the restructure goes ahead i will retain 10,000 Intoll and 2000 MQA and I will receive $0.10 per mig share ($1,000.00) as a special div. Personaly I reckon this would be better as a capital return rather than a taxable div.

Intoll has an alleged nta in excess of $1.60 and MQA has an alleged nta in excess of $3.50 (amazing for a share with current value of $1.335 particularly considering holders will receive a special div of $0.10 per mig share).

MQG will receive a break fee for relinquishing management contol of Intoll but will continue to receive management fees for MQA. Sounds like a win win for MQG. If MAP is any indication of where the share price can go after MQG is paid off, it also has the potential to be a win win for MIG share holders as well.

Intoll should experience growth in the share price. It will have a low leveraged level of debt, cash reserves and a steady income stream indexed to inflation for a considerble period of time. MQA, while having a high level of nta, will also have a high leveraged level of debt. This isn't good but this is the division that will continue under MQG management. They have an incentive/obligation to perform and ensure added shareholder value to justify their ongoing management fees. These fellows are smart, the debt per asset of MQA is normally isolated to the respective asset. If one asset fails to perform and needs to be cut loose it normally has no recourse over the other assets (this is evident in the mof assets as well).

As usual, you should do your own research and your own risk assessment. No responsibility accepted etc etc.

 

[nulla nulla]

I hold so I may be biased. In fact I cashed out 500 nab shares in my smsf today to purchase 10,000 mig at $1.335. If the restructure goes ahead i will retain 10,000 Intoll and 2000 MQA and I will receive $0.10 per mig share ($1,000.00) as a special div. Personaly I reckon this would be better as a capital return rather than a taxable div.

Intoll has an alleged nta in excess of $1.60 and MQA has an alleged nta in excess of $3.50 (amazing for a share with current value of $1.335 particularly considering holders will receive a special div of $0.10 per mig share).

MQG will receive a break fee for relinquishing management contol of Intoll but will continue to receive management fees for MQA. Sounds like a win win for MQG. If MAP is any indication of where the share price can go after MQG is paid off, it also has the potential to be a win win for MIG share holders as well.

Intoll should experience growth in the share price. It will have a low leveraged level of debt, cash reserves and a steady income stream indexed to inflation for a considerble period of time. MQA, while having a high level of nta, will also have a high leveraged level of debt. This isn't good but this is the division that will continue under MQG management. They have an incentive/obligation to perform and ensure added shareholder value to justify their ongoing management fees. These fellows are smart, the debt per asset of MQA is normally isolated to the respective asset. If one asset fails to perform and needs to be cut loose it normally has no recourse over the other assets (this is evident in the mof assets as well).

As usual, you should do your own research and your own risk assessment. No responsibility accepted etc etc.

Well doesn't time fly when you are having fun. The share previously known as mig is now renamed ito and holders received a bonus(?) issue of 2 mqa for every mig held at the time of restructure. The Macquarie expectation of market calue for the new structure did not eventuate. ITO opened at $1.21 traded up to $1.30 over a few days and has steadily worked it's way down to $1.11 since. MQA opened at $0.51 worked it's way up $1.00 as some of the investment companies took up significant positions then collapsed back to $0.70 - $0.74.
Overall the restructure doesn't appear to have freed up good mig from bad mig in any manner that would enhance the share value. If anything it has gone backwards substatially.

 

[nulla nulla]

Re: Intoll & Macquarie Atlas - formerly Macquarie Infrastructure Group

Well doesn't time fly when you are having fun. The share previously known as mig is now renamed ito and holders received a bonus(?) issue of 2 mqa for every mig held at the time of restructure. The Macquarie expectation of market calue for the new structure did not eventuate. ITO opened at $1.21 traded up to $1.30 over a few days and has steadily worked it's way down to $1.11 since. MQA opened at $0.51 worked it's way up $1.00 as some of the investment companies took up significant positions then collapsed back to $0.70 - $0.74.
Overall the restructure doesn't appear to have freed up good mig from bad mig in any manner that would enhance the share value. If anything it has gone backwards substatially.

The above should read mig holders received a bonus (?) issue of 2 mqa shares for every 5 mig shares held at the time of the restructure.

Subsequent to the above post ito dropped to $1.07 before lifting back to $1.11 and mqa surged to $0.88 before retreating to $0.825.
Interestingly there has been a bit of positioning by 4 of the biggest share holders in mqa to lock in 40% of the shares on issue at the present price levels, which is allegedly at more than 70% discount to net tangible assets per share.