Wednesday, June 25, 2008

MapletreeLog To Raise Some S$607m Through Rights Issue

Source : Channel NewsAsia, 24 June 2008

Mapletree Logistics Trust is planning to raise nearly S$607 million through a renounceable rights issue.

It is issuing about 831 million rights units at 73 Singapore cents each, representing a 21.4 per cent discount to MapletreeLog's volume weighted average price on June 24.

Unit holders will get three rights units for every four units held.

The net proceeds will be used to finance or refinance the acquisition of certain properties by MapletreeLog, to repay bank borrowings and for working capital.

MapletreeLog said the rights issue will strengthen its balance sheet, reduce its aggregate leverage significantly to about 38 per cent and give it flexibility to pursue yield-accretive acquisitions.

Mapletree Investments, the sponsor of the trust, said it will take up its full entitlement of 30.16 per cent of the rights issue. - CNA/vm

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