OTHERS AXIS REAL ESTATE INVESTMENT TRUST (“AXIS-REIT” OR “FUND”) (I) AUTHORITY TO ALLOT AND ISSUE UP TO 83,579,942 NEW UNITS IN AXIS-REIT (“UNITS”) TO FACILITATE A PLACEMENT EXERCISE (“PROPOSED PLACEMENT”) AND INCREASE IN THE ISSUED FUND SIZE OF AXIS-REIT TO A MAXIMUM OF 547,280,040 UNITS; AND (II) AUTHORITY TO ALLOT AND ISSUE UP TO 2,000,000 NEW UNITS FOR THE PURPOSE OF THE PAYMENT OF MANAGEMENT FEE TO AXIS REIT MANAGERS BERHAD IN THE FORM OF NEW UNITS
| AXIS REAL ESTATE INVESTMENT TRUST |
| Type | Announcement |
| Subject | OTHERS |
| Description | AXIS REAL ESTATE INVESTMENT TRUST (“AXIS-REIT” OR “FUND”) (I) AUTHORITY TO ALLOT AND ISSUE UP TO 83,579,942 NEW UNITS IN AXIS-REIT (“UNITS”) TO FACILITATE A PLACEMENT EXERCISE (“PROPOSED PLACEMENT”) AND INCREASE IN THE ISSUED FUND SIZE OF AXIS-REIT TO A MAXIMUM OF 547,280,040 UNITS; AND (II) AUTHORITY TO ALLOT AND ISSUE UP TO 2,000,000 NEW UNITS FOR THE PURPOSE OF THE PAYMENT OF MANAGEMENT FEE TO AXIS REIT MANAGERS BERHAD IN THE FORM OF NEW UNITS |
1. On behalf of the Board of Directors of Axis REIT Managers Berhad, being the management company of Axis-REIT (“Manager”) (“Board”), Maybank Investment Bank Berhad (“Maybank IB”) wishes to announce that an application has been submitted to Bursa Malaysia Securities Berhad today to seek an extension of time of up to 3 April 2015 to complete the following: (i) authority to allot and issue up to 90,762,819 new Units to facilitate the Proposed Placement (“Earlier Approved Authority 1”); and (ii) authority to allot and issue up to 2,000,000 new Units for the purpose of the payment of management fee to the Manager in the form of new Units (“Earlier Approved Authority 2”). (hereinafter referred to as “Proposed Extension of Time”) The Earlier Approved Authority 1 and Earlier Approved Authority 2 were approved by the unitholders of Axis-REIT (“Unitholders”) on 30 April 2013. 2. In view that the authority obtained from the Unitholders for the Earlier Approved Authority 1 was only valid for a maximum of one (1) year from 30 April 2013, the following were tabled to the Unitholders for renewal at the Unitholders’ meeting held on 29 April 2014 and the same were approved: (i) authority to allot and issue up to 86,040,951 new Units to facilitate the Proposed Placement and increase in the issued fund size of Axis-REIT to a maximum of 547,280,040 Units; and (ii) subscription of the new Units to be issued under the Proposed Placement by Dato’ Abas Carl Gunnar bin Abdullah, Datin Ka Ya-Shih (also known as Datin Kuyas Emiloglu), Tew Peng Hwee @ Teoh Peng Hwee, Dato’ George Stewart LaBrooy, Alex Lee Lao, Dean Lee Lao and John Lee Lao. 3. On 13 June 2014, 2,461,009 new Units were issued pursuant to the income distribution reinvestment plan that allows the Unitholders the option to reinvest their income distribution in new Units which was applied to the first interim income distribution in respect of the period from 1 January 2014 to 31 March 2014 (“First Interim Income Distribution IDRP”). As such, the issued fund size of the Fund had increased from 461,239,089 Units to 463,700,098 Units. As the approval of the Unitholders for the aforementioned increase in the issued fund size of Axis-REIT was up to a maximum of 547,280,040 Units and taking into account the 2,461,009 new Units which were issued pursuant to the First Interim Income Distribution IDRP, the revised maximum number of new Units that may be allotted and issued under the Proposed Placement would decrease to 83,579,942 new Units. 4. The Proposed Extension of Time is being sought premised on, among others, the effect the allotment and issuance of new Units under the Proposed Placement has on distribution per Unit (“DPU”). The timing of the issuance of new Units is crucial as the issuance of additional new Units would dilute the DPU. As such, the Manager wishes to minimise the effect of the dilution to the DPU by timing the implementation of the Earlier Approved Authority 1 to as close to the completion of the proposed acquisitions by the trustee of Axis-REIT, RHB Trustees Berhad for and on behalf of Axis-REIT, of three (3) properties situated in Shah Alam, Selangor Darul Ehsan, which was announced by Maybank IB, on behalf of the Board, on 4 August 2014, where such acquisitions will increase the property income of the Fund. This announcement is dated 12 September 2014. | |
Announcement Info
| Company Name | AXIS REAL ESTATE INVESTMENT TRUST |
| Stock Name | AXREIT |
| Date Announced | 12 Sept 2014 |
| Category | General Announcement |
| Reference No | MI-140912-63639 |
