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Lippo Malls Retail Trust in early talks on possible rights issue

LMIRT Management, the manager of Lippo Malls Indonesia Retail Trust (LMIR Trust), has confirmed in a media release that it is seeking the views of investment banks in relation to carrying out a rights issue.

However, it added that deliberations are still at an early stage, and that discussions may not result in a deal.

LMIRT was responding to earlier media reports that it was considering a rights offering to fund acquisitions and reduce debt, and that LMIR Trust had asked banks to pitch for a role in the rights offering.

LMIRT revealed that it is also considering other means of equity fundraising, and that it does not expect to carry out any equity fundraising this year.

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A Bloomberg report on Oct 23 said that LMIR Trust was considering a rights offering to raise around S$500 million to "fund acquisitions and reduce debt", quoting sources familiar with the matter.

Unitholders and shareholders are advised to exercise caution when dealing in its units and other securities, said the Reit manager.