SYD - Sydney Airport

[Mitsimonsta]

Re: MAP - Macquarie Airports

Shouldn't have been an issue unless it will have a material impact on MQG. Obviously it is a big buy of something with MQG advising for some big fees or running a capital raising.

Are we taking bets on what the announcement is going to be?

BNE is obviously the biggest takeover target for MAP as the projected growth out of it is simply phenomenal. However MEL would also be helpful. A380 capability at MEL, second biggest domestic passenger numbers. Perth could also be on the radar.

Otherwise I would imagine it will be a much larger stake in ASUR and their 9 Mexican airports.

 

[skyQuake]

Re: MAP - Macquarie Airports

Not released on ASX but you can read about it on reuters or something - Inclusion into portfolio and some analyst stuff. Also macq raking in big fees

 

[Mitsimonsta]

Re: MAP - Macquarie Airports

Not released on ASX but you can read about it on reuters or something - Inclusion into portfolio and some analyst stuff. Also macq raking in big fees

Not anywhere I can find on Reuters..... just the two trading halts.

No real info on Business Spectator yet.

 

[skc]

Re: MAP - Macquarie Airports

Shouldn't have been an issue unless it will have a material impact on MQG. Obviously it is a big buy of something with MQG advising for some big fees or running a capital raising.

Are we taking bets on what the announcement is going to be?

BNE is obviously the biggest takeover target for MAP as the projected growth out of it is simply phenomenal. However MEL would also be helpful. A380 capability at MEL, second biggest domestic passenger numbers. Perth could also be on the radar.

Otherwise I would imagine it will be a much larger stake in ASUR and their 9 Mexican airports.

I serious doubt MAP is buying anything... the announcement says "strategic options to enhance security holder value". It is either internalisation of management, privatisation / delisting or someone taking a strategic stake in MAP.

If it was cap raising, they would just say capital management initiatives. And MQG doesn't need to be halted as well.

Regardless should be good for holders.

 

[sdmartin10]

Re: MAP - Macquarie Airports

Could be a capital raising to buy out the management agreement. Given the gearing they probably wouldn't want to use all their cash.

 

[Mitsimonsta]

Re: MAP - Macquarie Airports

Well, the announcement is ****.

11 years worth of management fees to break the deal. Why would MAP directors ever consider a deal like that? Some saving. Lets shaft the shareholders in the fund even more

Seems that 50.1% of votes can terminate the management rights for no reason. Might be a better way to go. Need to get enough holders to force a vote.

 

[joewolf]

Re: MAP - Macquarie Airports

I will vote No. Only winner big time is MQG. They lock in 2008 magnt fess net of costs with 150m units. This year the interim suggests that the fees are down by at least 12m.

Bad deal for Map holders.

I hold Map units

Do your own research before any investment decisions I have been wrong many times in the past and will be wrong many times in the future.

 

[drsmith]

Re: MAP - Macquarie Airports

What exactly does MQG do for the management fees it extracts from MAP ?

Put another way, Will MAP's corporate overheads be any less after MQG gets the additional units ?

 

[oldblue]

Re: MAP - Macquarie Airports

What exactly does MQG do for the management fees it extracts from MAP ?

Put another way, Will MAP's corporate overheads be any less after MQG gets the additional units ?

I suspect that the answer to the first question is, "Very little" and to the second, "Not really".

The issue is that MQG have the contractual rights to the fees at present and unitholders have to weigh up what it's worth to get them to re-negotiate that contract. Unfortunately, MQG hold most of the cards and unitholders will need to organise "the machinery" to take them on.

I held MAP, and MIG in past times but sold out when I came to realise how much the field was tilted in management's favour.

 

[Mitsimonsta]

Re: MAP - Macquarie Airports

Okay, might be time to revisit MAP.

Hold units myself, averaged in at $2.18 & I get a (small) allocation in the current SPP @ $2.30 - less than $200 worth. My parcel is so small that I feel like not participating - almost like it is hardly worth the effort.

Obviously any SPP discounted to trading value is worth a look at. It's a fairly serious discount (~21%) on current SP of $2.79 and we have had a higher SP of late. So on the face of the discount, plus the long-term SP and also taking into account a fairly decent dividend return, I think it is attractive to me.

My other choice other than not participating is to apply for more shares than I am entitled to, possibly by a factor of 3 or 4 and bring it up to closer to a $500-$600 parcel. While this would be helpful, I run the risk of being scaled back in the SPP. Funds would also need to come from Margin to support the buy (I get 50% LVR on MAP).

 

[skyQuake]

Re: MAP - Macquarie Airports

Okay, might be time to revisit MAP.

Hold units myself, averaged in at $2.18 & I get a (small) allocation in the current SPP @ $2.30 - less than $200 worth. My parcel is so small that I feel like not participating - almost like it is hardly worth the effort.

Obviously any SPP discounted to trading value is worth a look at. It's a fairly serious discount (~21%) on current SP of $2.79 and we have had a higher SP of late. So on the face of the discount, plus the long-term SP and also taking into account a fairly decent dividend return, I think it is attractive to me.

My other choice other than not participating is to apply for more shares than I am entitled to, possibly by a factor of 3 or 4 and bring it up to closer to a $500-$600 parcel. While this would be helpful, I run the risk of being scaled back in the SPP. Funds would also need to come from Margin to support the buy (I get 50% LVR on MAP).

MAP shortfall policy had a line in there about how you won't get more shortfall than your current holding. ie I don't think they will allocate you more than your current entitlement x2

 

[Mitsimonsta]

Re: MAP - Macquarie Airports

I have only just got the mailout today and am yet to read it... got a page reference for that?

The way you mention 'more than current holding' - well I hold 640, so if that's my maximum then I am okay with that.

If they specifically say 'double your entitlement' then that is bad.

 

[Mitsimonsta]

Re: MAP - Macquarie Airports

I have read through the offer document, and I could not find anything like what you mention skyQuake.

The only thing I could find was that if there is a shortfall of takeup of the offer, then Additional New Securities (in excess of entitlement) will be available and will be distributed PRO-RATA based on your entitlement amount.

So yes, it might be difficult to get more than your allocation on that basis. It all depends on how many people do not take up their allocations. But at a 20% discount I think it should be reasonably well supported.

 

[skyQuake]

Re: MAP - Macquarie Airports

I have read through the offer document, and I could not find anything like what you mention skyQuake.

The only thing I could find was that if there is a shortfall of takeup of the offer, then Additional New Securities (in excess of entitlement) will be available and will be distributed PRO-RATA based on your entitlement amount.

So yes, it might be difficult to get more than your allocation on that basis. It all depends on how many people do not take up their allocations. But at a 20% discount I think it should be reasonably well supported.

Yeah the 2x allottment is more of a guess really. The 2nd part of 5.1.2 read in conjunction with 'pro-rata allottment based on your entitlement' would more than likely mean you will be allocated a set multiple of your entitlement. (eg Like Amcor)
I wouldn't be surprised if its incredibly oversubscribed and they will only offer a small part in the SF.

Cheers

 

[Mitsimonsta]

Re: MAP - Macquarie Airports

I think you are right about oversubscription - mainly due to the way it has been structured with MQG agreeing to take part, underwriting & then with options to take additional units.

I have an entitlement of 58 units.... I've got $1K from the margin loan ready to fire at it. For me, MAP is a share I want to continue to hold - I get decent margin from it (it's back up to 75% LVR now) and gives a healthy dividend return.

The biggest carrot is not paying brokerage, and although it will push my average buy price up, it will not be to the extent of purchasing on-market. I'd like to hold 1K units of these, so I need 360 in the SPP to achieve that.

The only hope I have is that they really scale back the 'Foreign Persons' in order to keep the foreign ownership levels in check and give the Additional New Shares to the smaller locals, AND MQG scales back their extra units - of which I think they will only sell immediately after allocation anyway. As I read it, they have underwritten the offer, but they have the option of not taking up Additional Shares if there is demand.

I did well with the FXJ offer, I had just over $600 worth of entitlement and I could have got $50K worth! I threw $1800 at it and got my average down to something I liked, then as the price went up I got out with a small overall loss.

 

[Mitsimonsta]

Re: MAP - Macquarie Airports

Have put through a 4x entitlement payment. The worst that can happen is that I get less than that and they return the money to me in a few weeks.

 

[Mitsimonsta]

Re: MAP - Macquarie Airports

Entitled to 64. Got 68

Waiting for the money to come back. Anyone got their back yet? I'm with Commsec, nothing in mine as of this afternoon.

 

[nulla nulla]

Re: MAP - Macquarie Airports

At todays close of $3.03 map is looking better for anyone that topped up in the SPP at $2.30. Pity it is on thin volumes while the big traders are most noticable for their absence.
Traffic volumes appear to be improving. I guess we will see where map is going early in the new year when the "professional traders" return from their xmas new year holidays.

 

[nulla nulla]

Re: MAP - Macquarie Airports

Since 31 December 2009 map has climbed to the heady heights of $3.35 then slid to a recent low of $2.55. Plenty of movement in the channel for trade opportunities. Appears to have hit resistance at $3.10 and now heading back under $3.00?

 

[nulla nulla]

Re: MAP - Macquarie Airports

Dropped down to $2.86 then lurched and staggered back up to the $3.00 - $3.10 level. News of the sale of the stake in the Mexicain airport and the proposed return to shareholders of $0.125 per share has underpinned the current price, pushing it up to $3.20 before drifting back down to $3.08. There have been some big volumes days since the last post.
I expect it to drop back quickly (after the announcement of the timing and structure of the return) when it goes ex entitlement.