CapitaLand will inject A$281.6 million (S$333.1 million) into Australand by taking up its full entitlement in the Australian property unit’s A$475 million rights issue.
Sydney-based Australand – which yesterday posted a first-half net loss of A$268.8 million – says the proceeds will strengthen its balance sheet amid a challenging second half. It is the company’s second rights issue in about a year.
The exercise will ‘provide additional headroom against the covenant limits of Australand’s debt facilities, sufficient liquidity to meet all anticipated funding requirements over the next two years and (to) take advantage of selective opportunities in a disciplined manner’, Australand said.
To raise A$475 million – comprising A$380 million from an institutional tranche and A$95 million from a retail tranche – Australand is making a seven-for-10 non-renounceable pro-rata entitlement offer of new stapled securities at A$0.40 apiece. The offer price is a 20 per cent discount to the last closing price of A$0.50 on July 24.
CapitaLand, which has a 59.27 per cent stake in Australand, will take up its full entitlement for A$281.6 million cash. It does not expect its subscription or the rights issue to materially affect its net tangible assets per share or earnings per share for the financial year ending Dec 31. Its effective interest in Australand should stay the same. Continue reading
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