1. | On behalf of the Board of Directors of Axis REIT Managers Berhad (“Board”), being the management company of Axis-REIT (“Manager”), Maybank Investment Bank Berhad (“Maybank IB”) wishes to announce that an application has been submitted to Bursa Malaysia Securities Berhad today to seek a further extension of time to complete the Earlier Approved Authority (“Proposed Extension of Time”). |
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| The Earlier Approved Authority was approved by the unitholders of Axis-REIT (“Unitholders”) on 30 April 2013. The Earlier Approved Authority has been in force from the date of the Unitholders’ approval and shall continue to be in force until all the new units in Axis-REIT have been fully issued pursuant to the Earlier Approved Authority. |
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2. | On 24 October 2014 and 23 January 2015, 242,000 new units in Axis-REIT and 236,000 new units in Axis-REIT were issued to the Manager for the purpose of the payment of management fee to the Manager for the months of September 2014 and December 2014 respectively (“Issuance”). With the Issuance, the number of new units in Axis-REIT that may be allotted and issued pursuant to the Earlier Approved Authority has been reduced to 1,522,000 new units in Axis-REIT. |
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3. | On 3 March 2015, on behalf of the Board, Maybank IB announced, among others, that the Manager proposes to undertake the following: |
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| (i) a unit split involving the subdivision of every one (1) existing unit in Axis-REIT (“Existing Unit”) held by the entitled Unitholders on an entitlement date to be determined and announced later, into two (2) units in Axis-REIT (“Subdivided Units”) (“Proposed Unit Split”); |
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| (ii) an increase in the existing approved fund size of Axis-REIT to facilitate the Proposed Unit Split (“Proposed Increase in Fund Size”); and |
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| (iii) an increase in the issued fund size of Axis-REIT after the Proposed Unit Split or the existing issued fund size of Axis-REIT (as the case may be) to accommodate the issuance of, among others, the new Subdivided Units or Existing Units (as the case may be) pursuant to the Earlier Approved Authority. |
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| Subject to the relevant approvals being obtained for the Proposed Unit Split and Proposed Increase in Fund Size, the Proposed Unit Split if implemented, will increase the number of new units in Axis-REIT allowed to be issued pursuant to the Earlier Approved Authority to a maximum of 3,044,000 new Subdivided Units. |
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4. | The Proposed Extension of Time is being sought premised on the fact that the issuance of the remaining new Subdivided Units or Existing Units (as the case may be), for the payment of management fee pursuant to the Earlier Approved Authority will take several years to be fully issued considering the frequency of such issuances undertaken in a year and the quantum of the management fee. |
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This announcement is dated 10 March 2015. |
