Wednesday, February 11, 2009

Daily news - 10 Feb

CMT rights issue
CapitaMall Trust (CMT) has proposed to undertake an underwritten and renounceable 9-for-10 rights issue to raise gross proceeds of approximately S$1.23b. Approximately 1.5b units will be offered at S$0.82 per rights unit. Proceeds from the rights issue is to principally repay $956.2m in borrowings and the balance of the net proceeds will be used to pay for committed asset enhancement initiatives of CMT, and general corporate and working capital purposes. The rights issue will allow CMT’s aggregate leverage to be reduced from 43.2% as at 31 Dec 08 to 29.1%. The management's long-term target gearing is between 30-35%. The last days of cum-rights trading for the rights issue is 3 Mar 2009.

Source: Kim Eng

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