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In reply to: michaelirish on Tuesday 28/03/06 08:13pm

As I said sometime ago...




It is very likely that...we will have



(1) Old MIG


with an emphasis on acquistion outside Australia...mainly in the US


centre on capital growth, and less emphasis on divs...much like what they intended with the first Ferrovial venture in the 407ETR and the European roads


And the fee structure greatly reduced



(2) New MIG



Franking credits



Flat fee for management

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Hi Michael, If your prediction comes true with old MIG and New Mig does that mean I should start getting a war chest ready?

Still smarting from last time when cost was $3.77 and its taken until now to get back to that. MBL has a habit of being pricey at time of offer to holders and falling soon after


Probably the golfer will tread warily, its been a sensational year; dont want to spoil it.


All the best, appreciate your posts.



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In reply to: oldgolfer on Monday 03/04/06 04:24pm



Macquarie's analyst's view:


The divestment of the mature assets should demonstrate the value in MIG's portfolio of roads and ultimately, confidence in the NAV for both the new fund (NewCo) and MIG. The likely choice of an IPO for NewCo over a trade sale possibly reflects tax issues. The structure of NewCo itself is likely to be similar to HLY with base fees being a flat cost based amount ie $3-4m pa. Implicit is MIG cutting its fees by approximately $10m pa ie 10% of the current fee. We estimate it is worth $227m or 9c per share for MIG holders.


The separation of NewCo from MIG also brings to a head capital management issues, as the mature assets provided 23% of the cash generation excluding refinancings. Our expectation is that MIG will use the current review to reshape the distribution policy away from annual dividends to share repurchases and recycling capital. At the very least, the 23c dividend in 2007 will drop, at least by the lost cashflow of 2.6c per share, but possibly more. A possible guide to the dividend outlook for the old MIG is Cintra, which has a yield of 1-2%, retaining cash for reinvestment opportunities.



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In reply to: jazzmoo on Thursday 13/07/06 10:43am


Did you note this?




Macquarie Infrastructure (MIG.AU) down 2.4% at A$3.22 on fears it might not get Australian Tax Office ruling allowing capital gains tax relief on Sydney Roads Group spinoff. "It's all to do with the spinoff," says institutional trader. "They need capital gains tax relief on the spinoff. So far the tax office hasn't given them that ruling. The spinoff really does depend on getting this ruling. Hence the stock if off 6% in 4 days." (From Dow Jones)

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In reply to: juke on Thursday 13/07/06 12:56pm

Yeah, but still. With or without the spin-off, we're still dealing with the same asset base, which the market values at $3.22? I guess that old saying of the market overdoing the downside and the upside with stocks is certainly true.

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In reply to: jazzmoo on Thursday 13/07/06 12:00pm

the ato ruling is critical - you have to pay 11.6c tax out of 38c(the value of SRG) for each MIG.


This is a mess - how come MIG did not address this issue before the demerger. it is destroying MIG's value. It is too late for them to pull off the spinoff.


the only way for sp to increase is surely a takeover of MIG by Cintra or other equity funds.


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