Private placement by Suntec raises questions
Couldn't the Reit have taken another route to avoid dilution for minorities?
MINORITY investors in Suntec Reit experienced that sinking feeling when they woke up on Wednesday to the news that the real estate investment trust had placed out 218 million new units overnight - not to them, but to private and institutional investors.
Suntec units, which were trading at a four-month high of $1.69, promptly fell 4.5 cents. It shed another half a cent yesterday, ending at $1.64 a unit.
Whenever private placements happen, minorities take the inevitable hit as they are now holding a smaller stake of the company. Distributions per unit (DPU), for example, fall from 9.3 cents to a forecasted 8.6 cents this year.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
S&P Global first-quarter profit beats estimates on strong product demand
Malaysia mulls over plans for casino in Forest City as part of Johor-S’pore Special Economic Zone: sources
Far East Orchard acquires 49% stake in UK-based purpose-built student accommodation operator for £17.6 million
Nestle sales growth sputters on US slump, vitamin snags
BNP Paribas beats estimates as lower costs offset trading slump
TikTok ultimatum puts US firms in firing line for China response