NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): FUND RAISING AXIS REAL ESTATE INVESTMENT TRUST (“AXIS-REIT”) PROPOSED PLACEMENT OF UP TO 75,180,200 NEW UNITS IN AXIS-REIT (“UNITS”), REPRESENTING 20% OF THE EXISTING APPROVED FUND SIZE OF AXIS-REIT OF 375,901,000 UNITS
| AXIS REAL ESTATE INVESTMENT TRUST |
| Type | Announcement |
| Subject | NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) FUND RAISING |
| Description | AXIS REAL ESTATE INVESTMENT TRUST (“AXIS-REIT”) PROPOSED PLACEMENT OF UP TO 75,180,200 NEW UNITS IN AXIS-REIT (“UNITS”), REPRESENTING 20% OF THE EXISTING APPROVED FUND SIZE OF AXIS-REIT OF 375,901,000 UNITS |
1. INTRODUCTION
On 26 July 2011, the unitholders of Axis-REIT approved the authority to allot and issue up to 75,180,200 new Units, representing 20% of the existing approved fund size of Axis-REIT of 375,901,000 Units (“Authority”), and the corresponding increase in the existing approved fund size of Axis-REIT from 375,901,000 Units to a maximum of 451,081,200 Units (“Increase In Fund Size”) at the unitholders’ meeting of Axis-REIT held on the same day.
The Authority will empower the Board of Directors of Axis REIT Managers Berhad (“Board”), the management company of Axis-REIT (“Manager”), with the flexibility to allot and issue new Units at any time until 31 December 2011 to such persons and for purposes as the Board may deem fit, provided that, among others, the aggregate number of new Units to be issued pursuant to the Authority does not exceed 20% of the existing approved fund size of Axis-REIT.
On behalf of the Board, Maybank Investment Bank Berhad (“Maybank IB”) wishes to announce that Axis-REIT proposes to undertake a placement of new Units to investors to be identified through its Joint Placement Agents, Maybank IB and CIMB Investment Bank Berhad under a book-building process (“Proposed Placement”). Axis-REIT intends to place out up to 75,180,200 new Units (“Placement Units”), representing 20% of its existing approved fund size of 375,901,000 Units.
Further details of the Authority can be found in the Circular to unitholders of Axis-REIT dated 11 July 2011.
2. REGULATORY APPROVALS OBTAINED
The following regulatory approvals have been obtained for the Proposed Placement: (a) the approval of the Securities
Commission for the issuance and listing of up to 75,180,200 new Units to be
issued pursuant to the Authority, and Increase In Fund Size, which was obtained
on 26 April 2011, through its letter dated 22 April 2011; and (b) Bursa Malaysia Securities Berhad (“Bursa Securities”) for the listing of and quotation for up to 75,180,200 new Units to be issued pursuant to the Authority, on the Main Market of Bursa Securities, which was obtained on 30 June 2011, through its letter dated 28 June 2011. 3. ISSUE PRICE OF THE PLACEMENT UNITS The Board had, on 18 November 2011 fixed the issue price of the Placement Units at RM2.45 per Unit. The issue price of the Placement Units of RM2.45 per Unit represents a discount of about 3.92% to the 5-day volume weighted average market price of the Units up to 18 November 2011 of RM2.55 per Unit. 4. RANKING OF THE PLACEMENT UNITSThe Placement Units shall, upon allotment and issue, rank equally in all respects with the existing Units except that the new Units will not be entitled to any distributable income, right, benefit, entitlement and/or any other distributions that may be declared before the date of allotment and issue of the Placement Units. The total proceeds to be raised from the Proposed Placement will be approximately RM184.2 million. Axis-REIT intends to use the proceeds raised from the Proposed Placement (after netting-off expenses relating to the Proposed Placement) for repayment of part of Axis-REIT’s bank borrowings. 6. INTERESTS OF THE DIRECTORS AND MAJOR SHAREHOLDER OF THE MANAGER, MAJOR UNITHOLDERS AND/OR PERSONS CONNECTED Axis-REIT will not place out any Placement Units to interested persons of the Manager and/or persons connected to them. Therefore, none of the Directors, major shareholder of the Manager, major Unitholders and/or persons connected to them has any interest, direct or indirect, in the Proposed Placement. 7. ADVISER Maybank IB has been appointed as the Adviser and the Joint Placement Agent for the Proposed Placement.
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Announcement Info
| Company Name | AXIS REAL ESTATE INVESTMENT TRUST |
| Stock Name | AXREIT |
| Date Announced | 18 Nov 2011 |
| Category | General Announcement |
| Reference No | MI-111118-54892 |
