MI REIT rebuts CIT’s claims

MacarthurCook Industrial REIT (MI REIT) has rebutted Cambridge Industrial Trust’s (CIT’s) assertions that its recapitalisation plan is “massively value destructive”.

MI REIT said on Tuesday that unitholders should not allow themselves to be distracted by analyses that are inaccurate, incomplete and misleading.

It said there are a number of mistakes in CIT’s analysis. These include: CIT’s claim that new and cornerstone investors like AIMS Financial and AMP Capital would achieve a takeover of MI REIT after the recapitalisation.

MI REIT maintained that the cornerstone investors are not acting together with AIMS Financial and AMP Capital.

It also asserted that CIT is wrong in its calculation of the amount of placement and underwriting fees that would be paid out in the recapitalisation process.

MI REIT called on its unitholders to approve the recapitalisation plan, as recommended by its independent directors.

CIT, the largest unitholder in MI REIT with a nearly 10 per cent stake, had said on Monday that it will vote against MI REIT’s proposal and urged others to do likewise.

The voting for MI REIT’s recapitalisation proposal will take place on November 23.

Source : Channel NewsAsia – 17 Nov 2009

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