OTHERS AXIS REAL ESTATE INVESTMENT TRUST ("AXIS-REIT") EXTENSION OF TIME FOR THE IMPLEMENTATION OF THE AUTHORITY TO ALLOT AND ISSUE UP TO 219,103,216 NEW UNITS IN AXIS-REIT ("UNITS"), REPRESENTING UP TO APPROXIMATELY 19.9% OF THE EXISTING ISSUED FUND SIZE OF AXIS-REIT OF 1,099,793,068 UNITS, TO FACILITATE A PLACEMENT EXERCISE ("PROPOSED EXTENSION OF TIME")
|AXIS REAL ESTATE INVESTMENT TRUST|
AXIS REAL ESTATE INVESTMENT TRUST ("AXIS-REIT") EXTENSION OF TIME FOR THE IMPLEMENTATION OF THE AUTHORITY TO ALLOT AND ISSUE UP TO 219,103,216 NEW UNITS IN AXIS-REIT ("UNITS"), REPRESENTING UP TO APPROXIMATELY 19.9% OF THE EXISTING ISSUED FUND SIZE OF AXIS-REIT OF 1,099,793,068 UNITS, TO FACILITATE A PLACEMENT EXERCISE ("PROPOSED EXTENSION OF TIME")
On behalf of the Board of Directors of Axis REIT Managers Berhad, being the management company of Axis-REIT ("Manager"), Maybank Investment Bank Berhad wishes to announce that an application has been submitted to Bursa Malaysia Securities Berhad today to seek an extension of time of six (6) months from 24 January 2016 to 23 July 2016 for Axis-REIT to complete the authority to allot and issue up to 219,103,216 new Units, representing up to approximately 19.9% of the existing issued fund size of Axis-REIT of 1,099,793,068 Units, to facilitate a placement exercise ("Authority").
On 21 August 2015, the unitholders of Axis-REIT ("Unitholders") approved, among others, the Authority, at the Unitholders’ meeting convened and held on the same date ("Unitholders’ Approval").
The Authority has been in force since the date of the Unitholders’ Approval and shall only continue to be in force for:
(i) a maximum of one (1) year from the date of the Unitholders’ meeting at which the Authority was approved, and it shall lapse upon the expiry of the aforesaid one (1) year subject to renewal of such authority, by a resolution passed by the Unitholders at a Unitholders’ meeting; or
(ii) where the Authority is revoked or varied by a resolution passed by the Unitholders at any of the subsequent Unitholders’ meeting,
whichever is the earliest.
The Proposed Extension of Time is being sought premised on, among others, the effect the issuance of new Units pursuant to the Authority has on the income 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 Authority to as close to the completion of future potential acquisitions of properties by the trustee of Axis-REIT, on behalf of Axis-REIT, where such acquisitions would increase the property income of Axis-REIT.
This announcement is dated 8 January 2016.
|Company Name||AXIS REAL ESTATE INVESTMENT TRUST|
|Date Announced||08 Jan 2016|
|Category||General Announcement for PLC|