Cambridge Industrial Trust Management, a 10 per cent unit holder of MacarthurCook Industrial Reit, said on Monday it opposes a recapitalisation exercise announced earlier this month.
Earlier, MI reit announced a series of fundraising measures that will allow it to repay a portion of its borrowings that expire in December and at the same time buy five new properties. The combined measures, which include a rights issue, the introduction of a new strategic investor and the sale of new shares to eight cornerstone investors, will bring in S$217.1 million in fresh funds.
The proposed exercise will see MI-Reit issuing new units to AMP Capital Holdings and other ‘cornerstone’ investors, followed by the rights issue.
But CIT said the exercise will hurt existing unitholders because it is priced at a steep discount to MI-Reit’s net asset value.
It is urging unitholders to vote against the measure and has offered to take over as manager of MI-Reit.
Source: Business Times, 16 Nov 2009
No comments:
Post a Comment