GLP to raise S$414.4m through private placement

Singapore-listed Global Logistics Properties (GLP) says it will raise S$414.4 million (US$339 million) in gross proceeds by issuing new shares through a private placement.

GLP will issue 160 million new shares at S$2.59 to partly fund its acquisition of Brazilian logistic assets.

The company said on Wednesday that it would form joint ventures with the Canada Pension Plan Investment Board, China Investment Corp and Government of Singapore Investment Corp to buy US$1.4 billion of assets in Brazil.

In a statement on Thursday, GLP said the placement price of S$2.59 is at a discount of about 4.0 percent to the volume-weighted average price of S$2.69 that GLP shares were last traded on the Singapore Exchange on 12th November.

The allotment and issue of the placement shares will increase the total number of GLP’s issued shares to 4,757,144,470 shares.

The company added that approximately 2.5 percent of the gross proceeds would be used for expenses relating to the placement.

Meanwhile, the remaining net proceeds will be used to fund the initial equity commitment of its acquisition in Brazil.

On the Singapore Exchange, GLP shares fell 4.8 percent to S$2.59 on Thursday.

Source : Channel NewsAsia – 15 Nov 2012

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