Asian Pay TV Trust IPO

Asian Pay TV Trust IPO is set to complete in the next few weeks. Details are as follows

Indicative timetable

Other related dates relating to MIIF to note:
Despatch of election form in relation to cash election: 13 May 2013
Expected deadline of cash election: 21st May 2013.
Expected date of crediting APTT units for MIIF unit holders who opt for units: 28 May 2013


Price
offering price of a maximum of $1.
The price will be confirmed on 16th May.

Distributions

Distributions to Unitholders on a semi-annual basis, with the amount calculated as at 30 June and 31 December each year for the six-month period ending on each of the said dates. However, the Trust’s first distribution period will be for the period from the Listing Date to 30 June 2013. The first distribution payment, which will be paid on or before 8 October 2013,

Yield

Gearing 
(based on page A-4 of preliminary prospectus)
1,1103,33 / 2,494,190 = 44.52%

Net asset:
$1,383,857,000

Total units including sponsor and cornerstone investors
1,436,800,000

NAV
$1,383,857,000/1,436,800,000 = $0.96

** to recompute after price is confirmed

Cornerstone investors:

• Asian Century Quest Capital LLC
• Capital Research and Management Company
• Eastspring Investments (Singapore) Limited
• Indus Capital Partners, LLC
• Lion Global Investors Limited
• Signature Global Advisors
• OZ Master Fund, Ltd., Goldman Sachs Profit Sharing Master Trust, Gordel Capital Limited,
  Ozea, L.P., OZ Equity Long-Short Master Fund, Ltd., and OZ Asia Master Fund, Ltd. (the “OZ
  Funds”)
• Quantum Partners LP
• Neuberger Berman LLC

Trust structure

 

Pros

• High yield
• Strong cornerstone investors (e.g. Quantum Vehicle, the investing vehicle of the Soros family;)
• TBC Group is Taiwan’s third-largest cable TV operator. This allows room for growth: the two largest cable TV providers in Taiwan, CNS and Kbro, which as at 31 December 2012, held 26.0% and 23.0% of Taiwan’s paying cable TV market share, respectively, face more stringent growth limitations than the TBC Group as their subscriber base is nearing the one-third national cable TV subscriber cap imposed by Article 21 of the CRTA. The TBC Group is
  below this cap and is well positioned to acquire independent system operators with the capacity to take on an additional 911,659 Cable TV subscribers, which would represent up to 121.3% increase over its existing Basic Cable TV subscriber base.

Cons

• Hard to gauge value of pay tv trust as there isn't much of such business trusts available
• Currency risks (TWD weakening, SGD strengthening)
• Unauthorized usage of pay TV services and piracy

Other thoughts
As a unit holder for MIIF, I am likely to opt for APTT units. In additon to this, I will apply for the IPO as well. I shall wait for the price determination to complete before deciding.