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MLT proposes private placement to raise some S$250m

MAPLETREE Logistics Trust (MLT) is proposing a private placement to raise around S$250 million to partially fund its acquisitions, the trust's manager said on Tuesday.

It plans to list between 154.6 million and 158.3 million new units, at an issue price ranging between S$1.579 and S$1.617 per new unit.

This price range represents a discount of around 1.5 per cent to 3.8 per cent of the adjusted volume-weighted average price (VWAP) of S$1.6415 per unit.

It is also a discount of around 3.1 per cent to 5.4 per cent of the VWAP of S$1.6685 per MLT unit for all trades done for the last trading day on Oct 21 before the placement agreement was signed on Oct 22.

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Around S$241.7 million or 96.7 per cent of gross proceeds will be used to fund the proposed acquisitions of seven logistics properties in Malaysia, Vietnam and China for a total of S$493.4 million.

The remaining S$8.3 million or 3.3 per cent will be used to pay professional fees and expenses incurred by MLT involving 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, the announcement said.

In connection with the placement, the manager intends to declare an advanced distribution for the period from Oct 1 to the day prior to the issuing of the new units – which is expected to be on Nov 1.

This will be paid together with the second quarter DPU as cumulative distribution. Based on estimates, the advanced distribution is expected to have a quantum of between 2.695 cents and 2.715 cents, and will be announced at a later date.

The trust’s manager had on Monday announced second quarter distribution of 2.025 Singapore cents per unit (DPU) for the quarter ended July 1 to Sept 30, 2019. This was up 3.4 per cent from 1.958 cents a year earlier.

Prior to MLT''s call for a trading halt on Tuesday, the counter closed at S$1.66, down one Singapore cent or 0.6 per cent.

The joint global coordinators and bookrunners for the deal are Citigroup Global Markets Singapore, DBS Bank and HSBC, Singapore Branch.