Valad Property Group (“Valad”) today announced a fully underwritten equity raising to raise $59.5 million before costs. The estimated net proceeds of $56.5 million from the equity raising will be used to settle the Scarborough Vendors Group deferred liability of £29.5 million.
The equity raising is fully underwritten at an issue price of $0.10 per New Stapled Security (“Offer”). The Offer is made up of two components: A 1 for 4 Accelerated Non-Renounceable Entitlement Offer to raise $40.2 million; Approximately $16.8 million institutional component and approximately $23.4 million retail component (“Retail Entitlement Offer”) and an institutional placement to raise $19.3 million (“Placement”)
The $0.10 per stapled security issue price represents a 37.5% discount to Valad’s closing price of $0.16 per stapled security on 22 September 2009 and at a 50.7% discount to 30 June 2009 pro forma NTA. The Offer is expected to result in a pro forma dilution of NTA as at 30 June 2009 of 15.4%; from $0.24 per stapled security to $0.20 per stapled security. New Stapled Securities issued under the Offer will rank equally with existing fully paid ordinary stapled securities.
Valad’s Managing Director, Peter Hurley, said “In the recent past we have received feedback from a number of our existing investors indicating they would be prepared to support raising equity in order to pay down liabilities such as the contracted payment to the Scarborough Vendors Group. The Offer provides existing Valad securityholders with the opportunity to participate at a discount to Valad’s current trading price and will strengthen Valad’s financial position.”
The Record Date for the Offer will be 7.00pm, Monday 28 September 2009 (“Record Date”). The Institutional Entitlement Offer and Placement (together the “Institutional Offer”), will be conducted on Wednesday 23 and Thursday 24 September 2009.
The funds raised from the equity raising will be used to repay the Scarborough Vendors Group deferred liability of £29.5 million. Goldman Sachs JBWere Pty Ltd is acting as Sole Lead Manager and Underwriter to the Offer.
