MIIF closes sale of 40 % stake in Changshu Xinghua Port
Related M&A Transactions
On 29 September 2013, Macquarie International Infrastructure Fund (MIIF) announced the financial close of the sale of a 40 % stake in Changshu Xinghua Port (CXP) to the existing co-shareholders, Pan-United Infrastructure Pte. Ltd. (PUI) and Petroships Investment Pte Ltd., who bought the stake for a consideration of S$112.2 million.
MIIF announced that it will distribute the net proceeds from the sale of CXP to MIIF shareholders as a return of capital in accordance with the capital reduction resolution that was approved by MIIF's shareholders on 30 April 2013.
As part of a Strategic Review carried out in June 2012, MIIF, an Asia-focused listed infrastructure fund, initiated a process of generating value for shareholders of MIIF. The company decided to sell MIIF's interests in Hua Nan Expressway, Changshu Xinghua Port (CXP) and Miaoli Wind.
MIIF acquired a 38.0% effective interest in Changshu Xinghua Port (CXP) in December 2005 for a consideration of S$106.4 million. This interest is held through a 40.0% shareholding interest in Singapore Changshu Development Company Pte Ltd (SCDC), which in turn holds a 95.0% shareholding interest in CXP.
CXP is a multi-purpose cargo port centrally located within the Yangtze River Delta industrial zone, a high growth industrial region that includes the cities of Suzhou, Wuxi and Changshu in the People's Republic of China.
PUI and Petroships will purchase 36.0% and 4.0%, respectively, of MIIF's 40.0% shareholding interest in SCDC. Post the Proposed Divestment, PUI will hold a 90.0% shareholding interest in SCDC and Petroships will hold the remaining 10.0%.