Starhill Global REIT - 1-for-1 rights issue at S$0.35 per rights unit

Monday, June 22, 2009

Starhill Global REIT has announced a fully underwritten renounceable 1-for-1 rights issue at S$0.35 per rights unit to raise S$337.3m. The rights units are priced at a 45.3% discount to last closing price of S$0.64. The company intends to pare down existing debts, pursue acquisitions and embark on asset enhancement initiatives. Rights units are entitled to distribution accruing starting 1 Jul 09.

The joint lead managers and underwriters of the rights issue are DBS, Merrill Lynch and Credit Suisse. YTL Corporation has undertaken to sub-underwrite up to 75% of the total rights issue. EGM will be held on 13 Jul 09 to seek approval from unitholders for whitewash resolution to waive the rights to receive mandatory offer from YTL.

Starhill Global valued its portfolio of investment properties at S$1,954.6m as at 15 Jun 09, a decline of 7.1% from valuation conducted on 31 Dec 08. The company's gearing has therefore increase from 31.1% to 33.4%. The 1-for-1 rights issue will reduce gearing to 20.7%.

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