CapitaLand Mall Trust proposes private placement to raise at least S$250 million

Singapore street in Bugis neighborhood with CapitaLand Mall Trust building; taken August 2018.Singapore’s Bugis neighborhood with CapitaLand Mall Trust building.

CapitaLand Mall Trust’s manager said on Thursday it has proposed a private placement of 122.01 million new units at an issue price of S$2.049 to S$2.097 to raise gross proceeds of at least S$250.0 million to partially finance its Westgate acquisition.

Around S$245.6 million of the proceeds would be earmarked to partially finance the 70 percent of Infinity Mall Trust, which includes Westgate, that CapitaLand Mall Trust doesn’t already own, it said in a filing to SGX after the market close on Thursday. The remainder of the proceeds would be used to pay the private placement transaction costs, the trust’s manager, CapitaLand Mall Trust Management said.

The issue price range is a discount of around 2.52 percent to 4.75 percent to the volume weighted average price of S$2.1512 of all trades on Thursday, which was the market day before the agreement was signed, it said. The issue price will be determined by a book-building process.

The offer is subject to an upsize option to raise additional gross proceeds of up to around S$25.0 million, it said.

The offer of new units will be made to eligible institutional, accredited and other investors, according to the company.

DBS Bank and J.P. Morgan (S.E.A.), the joint bookrunners and underwriters, agreed to procure subscriptions and payments, or failing that, to subscribe and pay for the new units, it said.

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