Daily news - 16 Mar

FairPrice sub-underwrites CapitaMall rights issue
CapitaMall Trust (CMT) – Singapore's largest supermarket chain NTUC FairPrice has agreed to spend as much as $22.1 million to buy up to 27 million rights units in CMT if the issue is not fully subscribed. The sub-underwriter arrangement comes under a standby purchase agreement. The 27 million units represent about 1.8 per cent of the rights units that have been offered by CMT and, if fully allocated to NTUC FairPrice, will raise its substantial stake from 6.35 per cent to 7.3 per cent. This also assumes that the groceries retailer fully subscribes for its own entitled rights shares. As a sub-underwriter, NTUC FairPrice will receive a fee of $332,100, or 1.5 per cent of the price for the 27 million rights units. The standby purchase agreement was inked between NTUC FairPrice and the joint lead managers and underwriters.

CapitaLand's rights issue over-subscribed
CapitaLand – Singapore's largest property company CapitaLand said that its $1.84 billion rights issue has been over-subscribed based on initial tallies done at the close of the rights offer on March 12. 'Acceptances and excess applications have been received for more than the total number of rights shares offered pursuant to the rights issue,' the developer said. The company did not provide details of the amount of the oversubscription. The news sent the developer's shares up 16 cents, or 8.2 per cent, to close at $2.12 yesterday. CapitaLand on Feb 9 announced a 1-for-2 rights issue to build up its war chest to $6 billion, from $4.2 billion previously. The issue was priced at $1.30 a share.

Source: Kim Eng