The Board of Directors of Macquarie International Infrastructure Fund (MIIF) are of the opinion that its current structure may not be suitable to realise the value of its underlying businesses, and that the stock is likely being undervalued by the market. As a result of these observations, and given the lack of acquisition opportunities, the Board has decided to distribute existing excess cash to shareholders via a special dividend, and commence the process of an orderly sale of its interests in its four assets. This strategy is intended to close the gap between share price and fund NAV. We think it may eventually prove difficult and time consuming for MIIF to realise the true values of its investments, and given the uncertainties involved in the process, current entry levels don't look attractive enough to us. In the near term though, investors can look forward to a special dividend of about 3.0Scts from the payout of existing excess cash reserves, in addition to the 2.75Scts final dividend for 2H-FY12. Maintain HOLD with higher TP of S$0.65 (Prev S$0.58).

SMRT announced that its 70:30 JV with NTUC Fairprice has been awarded the bid to manage Sportshub's retail area. This will further leverage on SMRT's retail strategy and boost non-fare revenue. The committed initial investment is S$15m and SMRT's 70% stake (S$10.5m) would be funded internally. No material impact on SMRT, maintain forecasts and Fully Valued call.

Ezion announced that EDB Investments (EDBI), the corporate investment arm of Singapore's Economic Development Board, will become a new strategic shareholder of the company. EBDI will subscribe for 14.3m new Ezion shares at an issue price of S$1.3315/share, representing 11.5% discount to the last closing price before the announcement. Following this exercise, EDBI will hold a 1.6% stake in Ezion. We view this development positively. We believe these new funds could potentially be deployed to generate earnings of about US$4m to US$5m per year. Maintain BUY, TP: S$1.82.

Keppel Corp may consider buying a yard in China as the country boosts offshore drilling to meet rising energy demand. Keppel, which already has one yard in China making parts for oil rigs, will seek out acquisitions if the government opens offshore projects by state-owned enterprises to foreign companies, according to its chief executive officer Choo Chiau Beng.

Cambridge Industrial Trust will be acquiring an indirect interest in 3 Tuas South Avenue 4, its maiden property in the JTC Tuas Biomedical Park. The purchase consideration is S$15.0m, of which CIT's share will be S$9.0m. The Property will be leased for 25 years to Agila Specialties Global, a pharmaceutical firm. This acquisition will increase CIT's portfolio's weighted average lease expiry from 3.0 to 3.3 years.

Aspial Corporationis proposing a renounceable non-underwritten rights issue of up to 61.6m new shares at an issue price of S$0.38 for each Rights Share on the basis of one (1) Rights Share for every twenty five (25) existing shares held. The Rights Issue will raise estimated net proceeds of approximately S$23.3m, to finance the Group's business expansion as well as for general working capital.

Chip Eng Seng has received the Australian's government approval for its A$170m residential development located on the prominent corner of Bourke and Queen Streets in Melbourne's CBD. Tower Melbourne is CES' second residential development project in Melbourne. Its first, the 388-unit 33M, located on Mackenzie Street, was completed in October 2012.

Further to the fire outbreak at its premises, China Paper said it was not aware of any irregularities in its accounts and any material information had already been disclosed.

The Housing and Development Board and Urban Redevelopment Authority are releasing two residential sites, estimated to yield about 1,300 housing units, for sale this month. The 99-year leasehold land parcels at Commonwealth Avenue and New Upper Changi Road (Parcel B) are on the confirmed list and reserve list respectively.

US stocks surged as investors were reassured by signs that a fiscal cliff deal may be taking shape. Stocks were further boosted after Standard and Poor's up Greece's credit rating by several notches. After market close, tech giant Oracle reported quarterly results that beat forecasts.

The Board of Directors of Macquarie International Infrastructure Fund (MIIF) are of the opinion that its current structure may not be suitable to realise the value of its underlying businesses, and that the stock is likely being undervalued by the market. As a result of these observations, and given the lack of acquisition opportunities, the Board has decided to distribute existing excess cash to shareholders via a special dividend, and commence the process of an orderly sale of its interests in its four assets. This strategy is intended to close the gap between share price and fund NAV. We think it may eventually prove difficult and time consuming for MIIF to realise the true values of its investments, and given the uncertainties involved in the process, current entry levels don't look attractive enough to us. In the near term though, investors can look forward to a special dividend of about 3.0Scts from the payout of existing excess cash reserves, in addition to the 2.75Scts final dividend for 2H-FY12. Maintain HOLD with higher TP of S$0.65 (Prev S$0.58).

SMRT announced that its 70:30 JV with NTUC Fairprice has been awarded the bid to manage Sportshub's retail area. This will further leverage on SMRT's retail strategy and boost non-fare revenue. The committed initial investment is S$15m and SMRT's 70% stake (S$10.5m) would be funded internally. No material impact on SMRT, maintain forecasts and Fully Valued call.

Ezion announced that EDB Investments (EDBI), the corporate investment arm of Singapore's Economic Development Board, will become a new strategic shareholder of the company. EBDI will subscribe for 14.3m new Ezion shares at an issue price of S$1.3315/share, representing 11.5% discount to the last closing price before the announcement. Following this exercise, EDBI will hold a 1.6% stake in Ezion. We view this development positively. We believe these new funds could potentially be deployed to generate earnings of about US$4m to US$5m per year. Maintain BUY, TP: S$1.82.

Keppel Corp may consider buying a yard in China as the country boosts offshore drilling to meet rising energy demand. Keppel, which already has one yard in China making parts for oil rigs, will seek out acquisitions if the government opens offshore projects by state-owned enterprises to foreign companies, according to its chief executive officer Choo Chiau Beng.

Cambridge Industrial Trust will be acquiring an indirect interest in 3 Tuas South Avenue 4, its maiden property in the JTC Tuas Biomedical Park. The purchase consideration is S$15.0m, of which CIT's share will be S$9.0m. The Property will be leased for 25 years to Agila Specialties Global, a pharmaceutical firm. This acquisition will increase CIT's portfolio's weighted average lease expiry from 3.0 to 3.3 years.

Aspial Corporationis proposing a renounceable non-underwritten rights issue of up to 61.6m new shares at an issue price of S$0.38 for each Rights Share on the basis of one (1) Rights Share for every twenty five (25) existing shares held. The Rights Issue will raise estimated net proceeds of approximately S$23.3m, to finance the Group's business expansion as well as for general working capital.

Chip Eng Seng has received the Australian's government approval for its A$170m residential development located on the prominent corner of Bourke and Queen Streets in Melbourne's CBD. Tower Melbourne is CES' second residential development project in Melbourne. Its first, the 388-unit 33M, located on Mackenzie Street, was completed in October 2012.

Further to the fire outbreak at its premises, China Paper said it was not aware of any irregularities in its accounts and any material information had already been disclosed.

The Housing and Development Board and Urban Redevelopment Authority are releasing two residential sites, estimated to yield about 1,300 housing units, for sale this month. The 99-year leasehold land parcels at Commonwealth Avenue and New Upper Changi Road (Parcel B) are on the confirmed list and reserve list respectively.

US stocks surged as investors were reassured by signs that a fiscal cliff deal may be taking shape. Stocks were further boosted after Standard and Poor's up Greece's credit rating by several notches. After market close, tech giant Oracle reported quarterly results that beat forecasts.

Source: DBSV