Macquarie International Infrastructure Fund Limited (MIIF) will pay out cash, divest CXP, Maoli and Hua Nan Expressway

The Strategic Review, which included an assessment by CIMB Bank Berhad, Singapore 
Branch (CIMB) and consultation with a cross section of shareholders, generated the 
following key observations:   

• MIIF’s current share price does not adequately reflect the value of MIIF’s infrastructure businesses 

• MIIF’s current structure may not be the most appropriate structure to reflect the value of its businesses  

• Taiwan Broadband Communications (TBC), Changshu Xinghua Port (CXP) and Hua Nan Expressway (HNE) are each generating sustainable cash distributions which underpin their respective values  

• Executing MIIF’s stated strategy of investing directly in operating Asian infrastructure businesses is constrained   by MIIF’s current share price and the prevailing market environment. 

• After considering the above observations and assessing the alternatives available to MIIF, the Board has concluded that in order to maximise value for MIIF’s shareholders the strategy for MIIF should change.   

As a result, the Board 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 

• Allow MIIF’s corporate-level debt facility to lapse upon maturity

These initiatives have been formulated with a focus on maximizing and returning value to MIIF shareholders. The Board will endeavor to execute these initiatives in a timely manner  however, these initiatives involve complex processes which will require active management and prudent actions to safeguard the interests of MIIF shareholders.

The strategy will substantially alter the focus of MIIF. The Independent Directors of the Board have concluded that the change in MIIF’s strategy requires an amended approach to the arrangements with MIIF’s Manager

The Independent Directors will seek to restructure the Manager’s fee arrangements to realign the interests of MIIF and the Manager. The Independent Directors will seek appropriate independent advice with respect to its discussions with the Manager.

On 4 December 2012, MIIF announced the Board’s intention to appoint an additional Independent Director to the Board. MIIF’s Nominations and Corporate Governance 

Committee has appointed global executive search firm, Spencer Stuart to assist with the search for the new Independent Director including canvassing the inputs from representatives from a number of MIIF’s major shareholders