MACQUARIE International Infrastructure Fund (MIIF) has moved to suspend trading of its shares to prevent confusion over entitlements related to a divestment of its Taiwan cable television business.

Yesterday, MIIF said in an announcement to the Singapore Exchange (SGX) that it intended to voluntarily suspend trading in its shares for eight trading days from today.

This is because from today, MIIF stocks traded no longer carry entitlements to Asian Pay Television Trust (APTT) units.

MIIF shareholders approved the sale of the company's 47.5 per cent stake in Taiwan Broadband Communications (TBC) to APTT last week. Under the proposed sale, they can receive either a proportionate share of units in APTT or cash in return.

There is a "material risk" of disorderly trading if MIIF shares are allowed to trade during the eight-day period, the company said.

"As TBC currently constitutes a significant portion of MIIF's net assets, if trading in MIIF shares is not suspended, it is likely that the price of MIIF shares will rerate downwards significantly once MIIF shares trade ex-entitlements."

Further, until the initial public offering is complete and APTT units trade on SGX, MIIF noted that its divestment is not complete and the entitlements may not materialise.

A decline in share price may create confusion in the market and disorderly trading by shareholders or investors who are not fully aware of the circumstances, the company said.

MIIF shares gained 2.4 per cent at 63 cents yesterday.

APTT, a business trust, is set to debut on SGX on May 29 with TBC as its sole asset. It could raise up to $1.4 billion, which would be Singapore's largest listing this year since Mapletree Greater China Commercial Trust's IPO in March which raised over $1.6 billion.

Ng Kian Teck, lead analyst at Sias Research, said the trust's projected distribution per unit (DPU) yield was attractive and that TBC has a stable business model. APTT expects 7.3 and 8.3 per cent DPU yield for this year and the next respectively, based on the maximum offering price of $1.00 per unit.

But he cautioned that the size of the offering meant it was dependent on market appetite.

"Because (with) this kind of huge size IPO, you are at the mercy of the market, let's put it this way." APTT has an investment mandate to seek out opportunities in pay TV and broadband businesses in Taiwan, Hong Kong, Japan and Singapore.

But analysts believe it will focus on Taiwan over the short term.

"Right now, their focus is on developing an even stronger, cash generative business with high levels of product innovation in Taiwan and listing that business successfully," said Vivek Couto, executive director at Media Partners Asia, the independent market consultant for the IPO.

Mr Ng from Sias Research agreed, noting that the trust still has more capacity to expand in its "homeground" of Taiwan.