NEW YORK–(BUSINESS WIRE) – Macquarie Infrastructure Corporation (NYSE: MIC) announced today that it is selling its International-Matex Tank Terminals (“IMTT”) business to a subsidiary of Riverstone Holdings, Inc. for $ 2.67 billion, net of closing adjustments successfully completed and including assumed debt of approximately $ 1.11 billion. MIC announced that it entered into an agreement to sell IMTT on November 9, 2020.
As previously mentioned, MIC’s Board of Directors has decided to return all of the net proceeds from the sale to shareholders with a special dividend after paying taxes and expenses and after repaying debts at the holding company level. The Board of Directors has approved the payment of a one-time dividend of $ 11.00 per MIC common share. The special dividend will be paid to the registered shareholders on January 8, 2021 at the close of trading on January 5, 2021.
Christopher Frost, MIC Chief Executive Officer, said, “With the successful completion of the IMTT sale, we will focus our resources on operating our remaining businesses, both of which are in line with our expectations, and on selling the company or these companies separately unlock additional value for shareholders. ”
For U.S. federal income tax purposes, MIC estimates that 47.5% ($ 5.225) of the one-time dividend will be treated as taxable dividend, based on the company’s 2021 earnings and earnings estimate and the remaining 52.5% ($ 5.775) ) treated as a return on investment equal to the shareholder base in the shares, with any excess generally treated as a capital gain. These estimates are based on currently available information and are subject to change. Additional information on the tax treatment of the one-time cash dividend, including the actual amount that will be treated as a taxable dividend, is made available on the Investor Relations page of the MIC website at www.macquarie.com/mic. The actual amount that will be treated as a taxable dividend to MIC shareholders may differ materially from these estimates due to final MIC results and other developments that may arise between the time this information is provided and the time this information is made available. The final determination of the actual amounts that will be treated as taxable dividends and return on investment will be based on MIC’s full year 2021 results and earnings, which are expected to close in January 2022.
Since the dividend payment will account for more than 25% of the share price on the day of announcement, the New York Stock Exchange (“NYSE”) has determined that MIC’s shares trade with “invoices due,” which is an assignment of the right to receive the cash dividend for the day before the record date until the payment date. The shares will only start trading on January 11, 2021, the first business day after the payment date on January 8, 2021, without dividends. Shareholders who sell their shares on or before the payment date are not entitled to the cash dividend. Due invoices oblige a seller of shares to deliver the dividend to be paid on these shares to the buyer. The billing obligations due are usually settled between the brokers who represent the buyers and sellers of the shares. MIC is neither responsible for the amount of the due invoice nor for the processing of the due invoice. MIC stock buyers and sellers should consult their broker prior to trading to ensure they understand the implications of the NYSE’s maturity procedures.
MIC owns and operates a diversified group of companies that provides basic services to customers in the United States. The business consists of an airport services business, Atlantic Aviation, and companies that comprise a power services, manufacturing and sales segment, MIC Hawaii. For more information, please visit the MIC website at www.macquarie.com/mic.
This press release contains forward-looking statements. MIC may in some cases use words such as “project”, “believe”, “anticipate”, “plan”, “expect”, “estimate”, “intend”, “should”, “would”, “could”. , “potentially” or “may” or other words that convey uncertainty about future events or results used to identify these forward-looking statements. These statements include statements about our expected financial performance and strategic and operational plans, statements about potential transactions in connection with the pursuit of strategic alternatives and the expected use of any proceeds from them, and statements about the expected specific and general effects of COVID-19 Pandemic and any assumptions, expectations, predictions, intentions or beliefs about future events. Forward-looking statements in this press release are subject to a number of risks and uncertainties, some of which are beyond MIC’s control, including but not limited to: changes in general economic or business conditions; the short and long term effects of the COVID-19 pandemic; his ability to service debt, meet and refinance terms and conditions, successfully integrate and manage acquired businesses, retain or replace skilled employees, complete growth projects, deploy growth capital and manage growth, make and fund future acquisitions, and his Implement strategy; the regulatory environment; demographic trends, political environment, economy, tourism, construction and transport costs, air travel, environmental costs and risks; Fuel and gas costs as well as other raw material costs; its ability to offset increased customer costs, cybersecurity risks, work stoppages or other work stoppages; Risks in connection with acquisitions or sales, litigation risks; Risks associated with the shared services initiative and the ability to generate cost savings; Reliance on sole or limited source suppliers, risks or conflicts of interest associated with the relationship with the Macquarie Group, and changes in US federal tax law.
MIC’s actual results, performance, prospects, or opportunities could differ materially from those expressed or implied in the forward-looking statements. Additional risks that MIC is not currently aware of can also lead to deviations in the actual results. Given these risks, uncertainties, and assumptions, you should not place undue reliance on forward-looking statements. The forward-looking events described in this release may not occur. These forward-looking statements are made as of the date of this publication. MIC assumes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or for any other reason, except as required by law.
MIC is not an authorized depository institution under the Banking Act 1959 (Commonwealth of Australia). MIC’s obligations do not constitute deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL makes no guarantee or other representation with respect to MIC’s obligations.