CapitaLand offers 20% of Australand stapled securities through secondary placement
Australand remains a key investment for CapitaLand
Singapore, 21 November 2013 – CapitaLand Limited has placed out 115.66 million stapled securities of Australand Property Group (
Upon completion of the Secondary Placement, CapitaLand‘s effective interest in Australand will be reduced from 59.1% to 39.1%. The Secondary Placement was priced at A$3.685 per stapled
The Secondary Placement achieves the following objectives:
- improve the liquidity and free float of Australand - the Secondary Placement will increase free float by about 50%, creating extra liquidity which will improve
Australand’s index ranking in the ASX 200 and ASX 200 A-REIT indexes; and - broaden Australand’s
securityholder base – the increased liquidity and improved index ranking will attract greater institutional investor presence in Australand’s share register.
He added: “CapitaLand will receive approximately S$485.3 million from the Secondary Placement which we will be able to deploy towards new opportunities.”
The Secondary Placement will result in a divestment gain of S$8.8 million and a fair value gain of S$26.6 million on re-measurement of the remaining stake. The Secondary Placement will also lead to the recognition of foreign currency translation reserve and interest rate hedging reserve losses of S$162.9 million. These losses arise from the de-consolidation of Australand as a subsidiary of CapitaLand following the Secondary Placement. This will result in a loss of approximately S$127.5 million taking into consideration the divestment gain, fair value gain and the one-time accounting loss arising from the recognition of foreign currency translation losses and hedging reserves.
There is no expected material impact to CapitaLand Group’s net tangible asset from these losses as the reserves are already accounted for in the Group’s equity. Based on the unaudited consolidated financial statements of the CapitaLand Group for the financial period ended 30 September 2013, its earnings per share would have decreased from 16.6 cents to 13.0 cents, assuming the Secondary Placement was effected on 1 January 2013.
Citi acted as sole