Keppel Land has announced a renounceable 9-for-10 rights issue to raise approximately S$712.3m as part of its long term strategy to maintain an optimal capital structure. Up to 653,462,397 new ordinary shares will be offered at the issue price of S$1.09 per Rights Share. As at 31 March 2009, the net debt-to-equity ratio of the Group was 0.52 and the NTA per Share was S$3.50. After adjusting for the estimated net proceeds of the Rights Issue and the issuance of up to 653,462,397 Rights Shares, the proforma net debt-to-equity ratio of the Group is expected to improve from 0.52 to 0.22 and the NTA per Share is expected to decrease to S$2.35.
The Rights Shares are priced attractively at an Issue Price of S$1.09 that represents a discount of:
(a) 42.0% to the closing price on 23 April 2009 (being the last trading day prior to the date of this announcement) of S$1.88 per Share;
(b) 27.6% to the theoretical ex-rights trading price ("TERP") of S$1.50 per Share
(c) 53.7% to the Company's post-Rights Issue net tangible assets ("NTA") of S$2.35 per Share
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