interesting note in afr today about infra fund

i tried to cut and paste but there is some sort of encryption on it.

article basically says that some listed infra co's are preparing to sell various assets into wholesale funds and sovereign wealth funds to realise the real value as the market is not valuing them correctly. it will only take one transaction to happen and infra stocks will blast off because of the potential corporate activity. watch this space, MIG would be the obvious one.

i would expect TCL and MIG to be looking quite hard at this. Macquarie is looking to raise $18b US to setup and unlisted infra fund, i would guess that they would look at getting some assets out of MIG and probably having a crack at putting CEU in there on the cheap.

Macquarie was involved with the CEU bid, Macquarie also get a performance bonus is CEU hits $2 when the road is ready. a few weeks back CEU put out an announcement that they were changing the consitition of CEU trusts if it became unlisted that Macquarie would still get the fee (they were trying to show how the value of stock would be determined if it was unlisted).

reserach this for yourselves if you dont belive me.

i recon Macquaire could be planning to bring CEU into a wholesale fund, raising $18b would allow them to pay $2 per share and they would then get their performance bonus, and they would then get management fees for managing it.

imagine if assets like CEU and the various MIG assets were managed by an unlisted wholesale fund. if that happen there would be no market to determine the price and the asset manager could then get the assets valued by an independant consultant and get guaranteed fee income. they would have no analysts looking at what they were doing, no volatility in share prices, lower admin fees etc.

this is a very real possibility for CEU and assets in MIG.