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Tue, October 20, 2020 – 11:41 am
The MAPLETREE Logistics Trust (MLT) manager proposed on Tuesday a capital fundraiser from new units in the trust to raise gross proceeds of up to S $ 650 million. This is to partially finance MLT’s acquisition of Asian logistics properties.
The trust seeks to acquire nine logistics properties in China, Malaysia and Vietnam, as well as the remaining 50 percent stake in 15 properties in China for a total of S $ 1.09 billion, the manager said in a separate exchange presentation on Monday.
The fundraising exercise will be carried out through a private placement with an option to expand, as well as an inalienable preferential offer.
The private placement seeks to raise gross revenues of around S $ 450 million by issuing between 222 million and 228.1 million new units at an issue price of between S $ 1,973 and S $ 2,027 per new unit. It is also subject to an expansion option to issue up to approximately 25.3 million additional new units to raise around S $ 50 million.
The issue price range for the private placement represents a discount of between approximately 2.5% and 5.1% from the volume weighted average price (VWAP) of S $ 2.0781 per unit in MLT of all transactions in the units on the Singapore Stock Exchange. Monday. until the time the underwriting agreement was signed on Tuesday. It also represents a discount of approximately 1.2% to 3.8% over an adjusted VWAP of S $ 2.0513 per unit.
Through the preferential offering, the servicer intends to issue up to around 76.2 million new units to eligible unitholders to raise up to S $ 150 million in profits. This will have an issue price of between S $ 1,940 and S $ 1,990 per new unit.
The range of issue prices for the preferential offer represents a discount of between approximately 4.2 percent and 6.6 percent to the VWAP of S $ 2.0781 per unit. It also represents a discount of between about 3 percent and 5.4 percent on an adjusted VWAP of S $ 2.0513 per unit.
Of the S $ 650 million in net revenue, 97.3 per cent or about S $ 632.5 million will be used to partially finance acquisitions, while 2.7 per cent or about S $ 17.5 million Singapore dollars will be used to pay estimated professional fees and expenses and other expenses incurred in fundraising.
Acquisitions are subject to the approval of the shareholders at an extraordinary general meeting. In the event that MLT does not proceed with the proposed acquisitions, proceeds from the capital fundraising will be reallocated to fund future investments and / or reduce debt, the administrator said.
Citigroup Global Markets Singapore, DBS, HSBC Singapore Branch and OCBC have been appointed joint global coordinators and bookmakers for capital fundraising.
MLT units closed up $ 0.01 or 0.5 percent at $ 2.08 on Monday before the announcement. MLT called for a ceasefire at 7.35 am on Tuesday.
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