CPPIB increases Macquarie Communications offer

The Canadian Pension Plan Investment Board (CPPIB) has offered an additional A$0.50 per share in order to secure its attempted acquisition of the Macquarie Communications Infrastructure Group (MCG).
 
CPPIB said in a statement that MCG’s independent directors had approved the special capital distribution, which will not impact its original fully funded proposal, unveiled in March, to acquire MCG at A$2.50 per share. The combined A$2.50 per share offer and the latest special distribution put the total equity value of MCG at A$1.64 billion (€940 million; $1.3 billion), or a 101 percent premium to the closing price of MCG’s shares prior to CPPIB’s initial offer. Including debt to be repaid as part of the transaction, the total acquisition value is expected to be around A$2.2 billion.
 
CPPIB’s senior vice president of private investments Mark Wiseman said the enhanced offer reflected the reduced uncertainty in capital markets: “At the time of our initial proposal, there was considerable uncertainty in the markets and the original value of our proposal reflected that market uncertainty. Today, the capital markets have improved considerably. We feel the enhanced proposal is appropriate in order to help secure the support of MCG’s largest security holders given the changed environment.”
 
MCG said today that it strongly encourages its security holders to vote in favour of the revised proposal.
 
The company has cancelled its ordinary distribution for the six months ending 30 June 2009.