CapitaLand fully places out its remaining stake in Australand
Transaction reinforces focus on Singapore and China
Singapore, 19 March 2014– CapitaLand Limited has placed out all of its remaining 226.2 million stapled securities of Australand Property Group (Australand) or approximately 39.1% of total issued stapled securities in a secondary placement exercise (Secondary Placement) on 19 March 2014. The Secondary Placement was executed at an average price A$3.75 per stapled security, and represents a discount of 3.6% to the closing price of Australand stapled securities as of 18 March 2014.
Last November, CapitaLand undertook a partial sale of Australand to improve trading liquidity, so that Australand’s securities would trade more in line with its peers, as well as to reallocate capital to its core markets. Subsequent to the partial sale, the strong share price performance provided CapitaLand the opportunity to fully unlock value in its remaining investment in Australand. CapitaLand will receive approximately S$970.1 million from the Secondary Placement which it will be able to deploy towards more opportunities in its core markets of Singapore and China and for general working purposes, including repayment of debt.
Mr Lim Ming Yan, President & Group CEO, CapitaLand Limited, said: “We are constantly evaluating our investments, including opportunities to divest our investments at an appropriate time. We have decided to divest our remaining stake in Australand now as market conditions are favourable and Australand’s share price has performed strongly in the past few months. This divestment would allow us to reallocate capital to our core businesses in Singapore and China.”
Following the completion of the Secondary Placement, CapitaLand is expected to recognise a net gain of approximately S$35.7 million.
Citigroup Global Markets Australia Pty Limited acted as sole bookrunner and underwriter for the Secondary Placement which is expected to be completed on 24 March 2014.