LIM Advisors Limited and Metage Capital Limited Today Published an Open Letter to All Shareholders of Macquarie International

LIM Advisors Limited and Metage Capital Limited Today Published an Open Letter
  to All Shareholders of Macquarie International Infrastructure Fund Limited

  PR Newswire

  SINGAPORE, Nov. 22, 2012

SINGAPORE, Nov. 22, 2012 /PRNewswire/ -- Ahead of the upcoming Special General
Meeting of MIIF due to take place on 5th December 2012, LIM Advisors Limited
and Metage Capital Limited today published the following letter to all MIIF

Dear Shareholders,

Macquarie International Infrastructure Fund----Upcoming Special General

LIM Advisors Limited and Metage Capital Limited are investment managers that
largely manage the assets of global institutional investors such as pension
funds. Both are patient value investors, managing funds which invest in the
Macquarie International Infrastructure Fund ("MIIF" or the "Fund"). We have
jointly decided to publish this letter to highlight to MIIF Shareholders why
we believe we need to requisition a special general meeting ("SGM"), which has
been done through Raffles Nominees (PTE) Limited, which holds our shares in
MIIF. We urge you as MIIF Shareholders to formulate your own independent
conclusions on the merits of this requisition and to cast your vote in favour
of the resolutions to be put forward at the forthcoming SGM in order to bring
about change.

As professional investors, we believe the most important issue facing
Shareholders in MIIF today is the substantial discount to net asset value
("NAV") that MIIF continues to suffer from. Since the end of 2007, the Fund
has continually traded at an unacceptable discount to NAV, which was 24% as of
30th September 2012 according to the presentation on the third quarter results
by Macquarie Infrastructure Management (Asia) Pty Limited (the "Manager"), a
subsidiary of Macquarie Group Limited. As long as the stock market valuation
of MIIF continues to trade so far below its published NAV, all Shareholders
are penalised for entrusting their capital to be managed in this Fund.

During the past two years, both LIM Advisors and Metage Capital have made
considerable efforts to work constructively with both the management of MIIF
and the directors of the Board to ensure that the discount to NAV is narrowed
and that the Fund focuses on returning more value to Shareholders. Since April
2011, we have:

  *Engaged in numerous meetings and calls with the Chairman and directors of
    the Board of MIIF.
  *Collectively written seven different letters to the Board putting forward
    initiatives for the Fund to address its discount to NAV.
  *Attended and spoken at MIIF's annual general meetings in both 2011 and
    2012 to highlight our concerns and urge more action by the Board.
  *Put forward repeated requests that the Board broaden itself through the
    addition of new independent directors with experience in tackling the
    issues the Fund faces.

Three of the four current independent directors of the Board have remained
unchanged since the Fund was listed in 2005, and all four have presided over
the Fund during the past five years when Shareholders have suffered from a
considerable discount to NAV. During this time, the Board has pursued a
strategy of refocusing MIIF into an Asian-focused infrastructure fund (which
we support) and of acquiring a considerable additional interest in Taiwan
Broadband Communications, including buying a stake from a related Macquarie
fund. However, neither of these strategies has adequately addressed the

For some months we have asked the Board to appoint an independent financial
advisor not affiliated with MIIF's Manager. We asked that this financial
advisor conduct a strategic review of the options available for the Fund to
maximise value for all MIIF Shareholders. Our original requisition for an SGM
lodged in September 2012 asked that Shareholders be given the opportunity to
vote on an advisory resolution on whether the new independent directors we
have nominated, along with the Chairman of the Board, could be delegated the
authority to appoint such an advisor.

On 10 October 2012, the current Board announced that it would conduct a
strategic review using an advisor. We are encouraged that the Board has
decided to appoint an independent financial advisor; however, we continue to
believe that for such a strategic review to be effective, fresh thinking at
the Board level and input from Shareholder representatives are required. The
only member of the Board currently with a significant financial interest in
the Fund is the Manager's representative.

We highlight that since the Fund was launched in 2005 at S$1 per share,
Directors remuneration has increased by 45%, despite the fact that the market
capitalisation of the Fund has fallen significantly over that period. Given
the legacy of the current Board, we believe it is now time for a change. Our
requisition provides Shareholders the opportunity to elect three new
candidates, all independent of the Manager, with the experience necessary to
tackle the issues the Fund continues to face. Together we believe the three
nominated directors have:

  *A track record of proactively engaging with the Manager to unlock value on
    behalf of all MIIF Shareholders.
  *A willingness to reach out to all Shareholders in the Fund and canvas
    their views on how best to realise Shareholder value.
  *A strong mix of closed-end fund, directorship and capital markets
    experience, all of which will complement the Board's existing skill set
    and the findings of the strategic review for which we have advocated.

We urge all MIIF Shareholders to reflect on the current Board's lack of
success in addressing the Fund's discount to NAV over the past 5 years, to
formulate your own independent conclusions on the merits of this requisition,
and to cast your vote at the forthcoming SGM.

In summary:

  *We believe all MIIF Shareholders deserve a better return on their
    investment in the Fund.
  *For 5 years, the current Board has failed to adequately address the
    discount from which Shareholders suffer.
  *After advocating a strategic review, we are encouraged that the Board has
    adopted this initiative; however, we question the Board's timing and
    whether the Board would have done this without being pushed by us.
  *Given its failures to date, we believe that the Board requires additional
    competencies, energy and experience to tackle these challenges. Our
    nominees are firmly independent of the Manager, and we believe they
    possess the attributes the Fund urgently needs.

Should you have any questions or require any additional information, please
contact our information line on +65 6631 3204.

In the event that you have already completed and returned the Depositor Proxy
Form to the registered office of the Singapore Share Transfer Agent, and you
now wish to alter your voting instructions, we recommend that you contact the
Fund or the Singapore Share Transfer Agent for further instructions on how to
do so prior to 2pm, 3 December 2012 (i.e., not less than 48 hours before the
start of the SGM).

Yours faithfully,

LIM Advisors Limited and Metage Capital Limited

Contact: CONTACTS: FTI Consulting, Leela Pandit (Singapore),, Tel: +65 6831 7840; FTI Consulting, Mark
Walters (Hong Kong),, Tel: +852 3768 4538
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