Macquarie International suspends trading in MIIF shares

Suspension lasts for 8 market days.

According to a release, Macquarie International Infrastructure Fund Limited announced its intention to voluntarily suspend trading in MIIF shares for eight market days to commence before the market opens on Tuesday, 7 May 2013 and to end after the market closes on Thursday, 16 May 2013.

Having taken into account the timing of the first day of the ex-Entitlement trading and the Record Date as set out above, MIIF is of the view that allowing the trading of MIIF sharesduring the Suspension Period may create a material risk of disorderly trading in the market, for the following reasons:

a) From 7 May 2013, MIIF shares traded on the market will no longer carry Entitlements. As TBC currently constitutes a significant portion of MIIF’s net assets, if trading in MIIF shares is not suspended, it is likely that the price of MIIF shares will rerate downwards significantly once MIIF shares trade exEntitlements.

b) Notwithstanding that MIIF shares will trade ex-Entitlements from 7 May 2013, it is important to note that Entitlements will not crystallise until the Proposed Offering is completed and the Units are listed on the SGX-ST, expected to take place on 29 May 2013.

c) Whether the Proposed Offering completes is dependent on many factors including equity market conditions and the book building of the Proposed Offering.

d) A decline in the price of MIIF shares (notwithstanding that there is no certainty that the Proposed Offering will complete) may create confusion in the market and result in disorderly trading by Shareholders or investors who are not fully aware of the circumstances.

e) As a result, there is a material risk that Shareholders may sell their MIIF shares on or after 7 May 2013 without fully appreciating that the Proposed Offering may not complete, in which event their Entitlements would not crystallise.

Taking the above factors into consideration, MIIF is of the view that the most prudent course of action to mitigate disorderly trading would be to voluntarily suspend trading in MIIF shares during the Suspension Period.