The issue price represents a discount of 2.9% to the volume weighted average price (VWAP) of $1.6989 per unit for all trades done on March 29, the day before the placement agreement was signed.
According to MLT’s manager, the private placement saw “strong participation” from new and existing institutional, accredited and other investors. This includes DBS Bank’s treasury investments unit (DBS TI), which was allocated 1.977 million new units under the private placement. In its statement, the REIT manager stated that the SGX-ST has no objection to the placement of new units to DBS TI as long as DBS Group Holdings does not own more than 5% of the total units in MLT among other conditions and that the amount placed to DBS should not be over 25% of the total new units under the private placement.
The REIT manager says it intends to distribute its income among the existing units from Jan 1 to April 10 with the quantum per unit currently estimated to be between 2.40 cents to 2.60 cents.
The new units are expected to commence trading at 9am on April 11.
See also: SGX gives approval-in-principle to FHT to delist
Units in MLT last traded at $1.70 before its trading halt on March 30.