Macquarie International Infrastructure Fund Limited is to sell its 8.7% interest in Arqiva. The proceeds will net the Singapore-based fund S$240.1 million (£115 million).
The sale will be made to three infrastructure investors that are already backers of the UK transmission company. Arqiva is owned by a consortium of seven shareholder groups, the largest being Canada Pension Plan Investment Board (CPPIB) with a holding in the region of 48%. Various other Macquarie-managed funds account for 13%, Industry Funds Management (IFM) has almost 13% and Motor Trades Association of Australia (MTAA) holds 5%.
In addition to its operation of most of the UK radio and television transmitter network, Arqiva also runs the broadband TV portal SeeSaw.
“Following the sale of MIIF’s interest in Arqiva, its portfolio will comprise entirely of direct investments in Asia. This will be a significant milestone for MIIF,” said John Stuart, CEO of MIMAL, MIIF’s manager. “Importantly, the proposed sale is at a significant premium to the value implied by MIIF’s prevailing share price,” said Stuart.
It has emerged that the Arqiva board is currently reviewing the operation’s capital structure. In the 12 months to 31 December 2009, the distributions attributable to Arqiva amounted to S$3.8 million or 5.9 per cent of MIIF’s total revenue. However, no dividends will be payable until the review has been completed.
