Corporates: MIG, ENV

  No wonder securities in Macquarie Infrastructure Group (MIG) are trading at a 50% discount to book value.The securities closed at & #36;1.26 yesterday, compared to a book value at June 30, 2008 of & #36;2.48.Yesterday's closing price was a loss of 8.5 cents, or 6.3%. The securities were down more than 10% at one stage.The company has so far not come up with any brilliant ideas to stop the slide in the price of its securities and bring certainty to the market understanding of its model.MIG is thought to have drawn weak interest in its program of asset sales, adding pressure on the toll-road operator to announce a capital raising to pay to debt.MIG has been trying to sell its remaining 25% exposure to Sydney's Westlink M7 and a portfolio of US assets to cut debt.But the aversion among investors to debt, infrastructure assets, coupled with weak traffic figures, has made MIG's sales efforts much tougher than expected.It told the market yesterday, in response to more market speculation about its future: & quot;In response to a request from the ASX regarding market speculation, MIG advises that it is reviewing options which seek to enhance security holder value.=No decision has been made by the MIG boards in respect of any of these options. & quot;As previously advised, MIG expects to update the market no later than its' full year results briefing which is currently scheduled for 20 August 2009. & quot;The announcement comes after & #160;speculation the debt-laden toll road operator is contemplating options including a capital raising or an asset sale.We know one thing though: the Macquarie derived model of a fund borrowing to boost gearing, returns and lower tax, is out.The 10 cents a security announced on June 18 will be the last. & quot;There will be no Distribution Re-investment Plan (DRP) with respect to this distribution. & quot;The components of the distribution will be advised after the end of the financial period on 30 June 2009. & quot; & quot;This will be the last distribution to be paid according to the policy whereby operating cashflow was supplemented by surplus funds to pay distributions. & quot;MIG's ongoing distribution policy is likely to reflect payments more in line with cash flow, & quot; MIG told the ASX last month.  

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