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MLT private placement over 13 times subscribed at S$1.617 per unit
MAPLETREE Logistics Trust on Wednesday said that its private placement announced on Tuesday was over 13 times covered, with the issue price fixed at S$1.617 per new unit.
The S$1.617 issue price was at the top end of the S$1.579 to S$1.617 range announced on Tuesday. This represents a discount of around 3.1 per cent to the volume-weighted average price of S$1.6685 per unit for all trades done on Oct 21 before the placement agreement was signed on Oct 22.
Through the exercise, MLT said it would raise around S$250 million from the issue of 154.6 million units, which is the lower end of the 154.6 million to 158.3 million unit range previously announced.
A majority of the gross proceeds or S$241.7 million will be used to fund the proposed acquisitions of seven logistics properties in Malaysia, Vietnam and China, at a cost totalling S$493.4 million. The remaining amount will be used to pay professional fees and expenses related to the acquisitions and placement.
Holders of the new units would not be entitled to any distributable income given out prior to the issue of the new units, MLT's manager added.
The private placement saw strong participation from new and existing institutional, accredited and other investors, the trust’s manager said.
DBS Bank’s treasury investments unit was allocated 300,000 new units under the private placement. The sponsor, Mapletree Investments, which is indirectly owned by Temasek Holdings, is a substantial unitholder of MLT. Accordingly, Temasek is a deemed substantial holder of MLT.
Based on the latest annual report of DBS Group Holdings for the financial year ended Dec 31, Temasek also has a direct and deemed interest of 29.9 per cent in DBS Group Holdings as at March 1, 2019.
Trading of the new units on the Singapore Exchange is expected to start at 9am on Nov 1. MLT will make a formal application to the bourse for the listing, dealing and quotation of the new units.
Following the private placement results announcement, MLT on Wednesday called for the lifting of a trade halt it requested on Tuesday. MLT units last changed hands at S$1.66, down one cent, or 0.6 per cent, on Monday.