DNZ raises $115m in discounted share placement
Share placement fully subscribed.
DNZ Property Fund [NZX: DNZ] has raised $115 million through the placement of new shares, which it will use to help fund the acquisition of the Antipodean property portfolio of 19 Countdown supermarkets for $287 million.
The 59.4 million share placement was fully subscribed at $1.94 a share, a 6.5% discount to DNZ's last price before the stock was placed in a trading halt.
DNZ plans to raise a further $15 million to fund the acquisition through a share purchase plan for New Zealand shareholders.
The Auckland-based company announced yesterday its deal with Antipodean Supermarkets and Antipodean Properties to buy the supermarket sites leased to General Distributors, the operator of Countdown and a subsidiary of Woolworths. The sites have leases ranging from nine to 19 years.
DNZ expects the purchase will lift distributable profit per share by between 1.3% and 1.8% in the first three full years of ownership.
The supermarket acquisition is expected to settle between October 28 and November 12. Three of the properties, worth $33.9 million, require third-party consents, which DNZ says will probably be obtained within 12 months.
(BusinessDesk)
Suze Metherell
Thu, 24 Sep 2015
Thu, 24 Sep 2015
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DNZ raises $115m in discounted share placement
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