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- Release Date: 01/07/13 17:04
- Summary: RIGHT: ARG: Argosy announces 1:7 pro rata renounceable rights issue
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ARG
01/07/2013 15:04
RIGHT
REL: 1504 HRS Argosy Property Limited
RIGHT: ARG: Argosy announces 1:7 pro rata renounceable rights issue
Argosy Property Limited ("Argosy") today announced it intends to raise
approximately $87 million of new equity capital through a 1:7 pro rata
renounceable offer of new shares to existing shareholders (the "Offer"). The
Offer is fully underwritten by First NZ Capital.
Mike Smith, Chairman of the Board, said "As part of its ongoing capital
management strategy, the Board considers it appropriate to raise equity
capital to repay bank debt incurred by Argosy to complete its recent
acquisitions and to provide financial flexibility for future acquisitions.
These recent acquisitions added attractive earning streams to Argosy and fit
well with our acquisition strategy.
In determining how to raise capital, the Board wished to provide all
shareholders the opportunity to participate pro-rata. Those shareholders who
do not participate are eligible to receive value for their rights by way of
the sale of their share entitlements under a shortfall bookbuild at the end
of the offer. The board considers this form of equity raising is likely to be
fairest to all shareholders."
Under the Rights Offer, eligible shareholders are entitled (but not obliged)
to subscribe for 1 New Share for every 7 Existing Shares held (that is,
registered in their names on Argosy's share register) as at 5.00 pm on 15
July 2013, at a price of $0.89 per Share (with entitlements to fractions of a
Share rounded down to the nearest whole number).
Further details relating to the Offer will be provided in a simplified
disclosure prospectus that will be mailed to shareholders, a document which
shareholders should consider carefully. Shareholders will receive
documentation from 17 July 2013, with rights trading commencing on the NZX
Main Board on 11 July 2013 and ceasing on the NZX Main Board on 29 July 2013.
Subscriptions under the rights offer must be lodged by 5pm on 2 August. New
shares will be allotted on 9 August 2013 following completion of the
shortfall bookbuild. The new shares will rank equally with existing shares
for future dividends.
Mike Smith also said "Argosy will continue to investigate property
acquisitions that fit our investment criteria, but based on the Board's
current expectations, we envisage that any activity will be funded by the
balance sheet flexibility created by this equity issuance and our on-going
divestment programme."
End CA:00238062 For:ARG Type:RIGHT Time:2013-07-01 15:04:13
