MIIF has decided to undertake the following initiatives.

- Distribute existing excess cash to shareholders as a one'off  special dividend;
- Commence a joint process with Macquarie Korea Opportunities Fund (MKOF),
- MIIF's TBC co'shareholder, to realise maximum value for their investment in TBC;
- Pursue the orderly divestments of MIIF's interests in HNE, CXP and Miaoli Wind;
- Distribute the proceeds from any divestment to shareholders as soon as practicable; and
- Allow MIIF's corporate'level debt facility to lapse upon maturity.

Mr Heng Chiang Meng, Chairman of MIIF said: 'The Board has examined a broad range of alternatives to address the gap between MIIF's share price and the value of its infrastructure businesses. After a thorough process, the Board has formulated a strategy which it is confident will deliver on the objective of maximising value for MIIF shareholders. The focus for MIIF now will be to implement the initiatives in a prudent and orderly manner.'

We view this as a positive development. We estimate MIIF's net tangible asset value to be around 72 cents, after taking into account foreign exchange effects. This is substantially higher than MIIF's current price of 59 cents.

Our fair value for MIIF is 68 cents. Therefore, in our opinion, MIIF's liquidation of its assets is likely to provide greater reward potential for shareholders.

Source: AmFraser