Cityspring Infrastructure Trust

[structuredfinancier]

This arrangement is very clearly a takeover of CIT by KIT, with the combined entity to be named KIT, while KI/KIFM will be sponsor/trustee-manager.

Nonetheless, the story is (1) CIT to accquire KIT by issuing XXX new units, (2) Combined entity will change name to KIT --> I just wonder, is there any reason for the difference in how the story is told vs how things actually are (takeover of CIT) ?

Lower yield fund acquiring a higher yield fund sounds more normal since it is an accretive acquisition.
KIT shareholders will be fuming if KIT is acquiring CIT and results in a drop in yield.

Although in actual fact, KIT is in the driver seat.

The current price is 54cts and CIT shareholders will get one-off distribution of 0.0303 cts in all. So, currently, the investors are paying 51cts for 3.67cts dividend. The yield is 7.2%. Not too bad for an infra fund.

Just double checking, should the one off distribution for CIT shareholders be 0.02479 cts instead - 0.198cts + (0.105 cts divided by the swap ratio of 2.106) ?

Nonetheless, that still works out to be > 7%.

There has been a lot of activity within Singapore solar space in the last 2 years. That may potentially be a space that KIT can explore in the near future.