MIIF agrees to sell entire interest in Hua Nan expressway

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MIIF agrees to sell entire interest in Hua Nan expressway

Macquarie International Infrastructure Fund Limited (MIIF) has agreed to sell its 81% effective interest in Hua Nan Expressway (HNE) in Guangdong, China.

The proposed divestment will be made to Topwise Consultants Limited, an existing shareholder of HNE, for a total cash consideration of US$110 million. It is subject to MIIF shareholders' approval.

Hua Nan Expressway is a fully operational 31-kilometre dual-carriageway urban toll road comprising six to eight lanes that through the centre of Guangzhou.

The deal was negotiated on an arm's length commercial basis and follows an extensive sales process undertaken by MIIF, with the advice of Citigroup Global Markets Asia Limited.

The proposed divestment is in line with the strategy to maximise returns to shareholders announced by the MIIF Board in December 2012 and endorsed by shareholders in March 2013. The pursuit of this strategy has resulted in the successful divestments of MIIF's interests in Taiwan Broadband Communications, Changshu Xinghua Port and Miaoli Wind, and the distribution of proceeds from these divestments to Shareholders.

MIIF plans to distribute the net proceeds and any residual cash following the settlement of its liabilities to shareholders by way of a redemption of ordinary shares in the capital of MIIF.

The MIIF Board has engaged KPMG Corporate Finance Pte Ltd to act as an independent financial advisor to opine on the fairness and reasonableness of the transaction.

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