What is communications infrastructure?
Communications infrastructure provides the physical facilities for the transmission of electronic communications signals. Such infrastructure may be used, for example, to deliver television and radio broadcasts or to provide voice and data services.
Communications infrastructure includes:
- broadcast towers and related infrastructure;
- mobile telecommunications towers;
- satellites and related infrastructure; and
- wireline infrastructure including intercity networks, local area networks and cable networks.
Communications infrastructure relates to the carriage and delivery of information, more so than to its content.
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What are MCG's investment objectives?
MCG will consider investments in communications infrastructure assets located in OECD countries or other countries (which have comparable sovereign credit ratings or economic performance) and which display all or some of the following characteristics:
- predictable cashflows and stable revenue growth;
- strategic characteristics which offer revenue enhancement opportunities through the delivery of existing services to new customers or new services using existing assets;
- high barriers to entry;
- availability of significant shareholdings which will enable it to influence the key strategic, commercial and financial decisions of the business; and
- an experienced and capable operational management team.
MCG would need to be satisfied that these characteristics are sufficiently met before it would invest in another asset.
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What are MCG's assets?
MCG's portfolio of communications infrastructure businesses includes:
- a 100% shareholding in Broadcast Australia, the owner and operator of a national broadcast transmission network which provides transmission services to the ABC and SBS, and to regional television and other media, telecommunications and community organisations; and
- a 48% interest in Arqiva, a leading broadcast services provider and wireless site operator in the UK and Republic of Ireland.
- a 48% interest in NGW through Macquarie UK Broadcast Ventures Ltd (MUKBHL). NGW has around 5,500 sites used for mobile communications and around 574 towers used for radio and television transmission broadcasts. NGW provides services to more than 16,000 tenants. NGW was acquired by the parent company of Arqiva Ltd; MUKBHL.
- a 50% interest in Airwave, a primary provider of secure digital radio and communications to Great Britain’s police, fire, ambulance and other public safety services, using a purpose built network that covers 100% of the population and 99% of the land area.
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How is MCG structured?
The investment structure of MCG is designed to optimise the investment returns to investors. MCG consists of three entities:
- Macquarie Communications Infrastructure Limited (MCIL), an Australian company.
- Macquarie Communications Infrastructure Trust (MCIT), an Australian trust.
- Macquarie MCG International Limited (MMCGIL), a Bermudian company.
The three entities are stapled together and cannot be traded separately.
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Who manages MCG?
Macquarie Communication Infrastructure Management Limited (MCIML), a wholly owned subsidiary of Macquarie Group. MCIML has been issued with an Australian financial services license authorising it to operate and manage a managed investment scheme and to provide management services to MCG.
MCIML's Australian financial services licence number is 221936.
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Why is it called a stapled security and not a share?
Stapled securities are equity securities comprising securities in two (or more) separate entities that have to be traded as a single stapled security. In MCG's case, stapled securities comprise a unit in an Australian trust (MCIT), a share in an Australian company (MCIL) and a share in a company registered in Bermuda (MMCGIL). MCG stapled security holders have an equal number of units in the trust and shares in the company.
Generally such structures are used to hold a portfolio of assets (such as infrastructure assets) and are designed with the aim of maximising the efficiency with which distributions are made to the stapled security holders.
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What is Macquarie Communications Infrastructure Group's ASX code?
The ASX code is "MCG".
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When did MCG list on the ASX?
MCG listed on the ASX on 13 August 2002.
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When will forecast distributions be paid on stapled securities?
Distribution guidance for FY2009 has been lowered to 10.0 cents per security. Distributions are likely to remain substantially below cash earnings until post August 2011 when MCG's Exchangeable Bond obligations will have been eliminated. Commencing in FY2010, MCG will move to paying its distribution annually in August until further notice.
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Is there a Distribution Reinvestment Plan (DRP)?
MCG has suspended the distribution and dividend reinvestment plan (DRP) with immediate effect. The DRP will therefore not be available for the next distribution to be paid in February 2009.
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How do I contact MCG's share registry?
MCG's share registry is Link Market Services. Their toll free number if calling within Australia is 1800 448 448. Their international phone number is 61 2 8280 7111. All correspondence can be sent to:
Attention: Link Market Services
Level 12, 680 George Street
Sydney NSW 2000
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How do I contact MCG management?
MCG's investor relations team can be contacted toll free within Australia on 1800 181 910. The international phone number is 61 2 8232 3214. All correspondence can be sent to:
Attention: Head of Investor Relations
Macquarie Communications Infrastructure Group
Level 11, No. 1 Martin Place
Sydney NSW 2000
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What is the Australian Tax Office's view of stapled securities?
The ATO has developed information to assist investors who own stapled securities determine their capital gains tax (CGT) obligations.
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Where can I find out how many MCG securities I have?
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