22nd Mar 2016 10:51
LONDON (Alliance News) - Primary Health Properties PLC on Tuesday said it will raise up to GBP120 million through the issue of 120 million shares by way of a firm placing, open offer and subscription at a price of 100 pence each.
60 million shares will be issued through a firm placing, with the remaining 60 million to be issued in a placing, open offer and subscription. Each will raise GBP60 million.
Primary Health said it has the ability to increase the size of the issue by up to a quarter should there be sufficient demand.
Qualifying shareholders are being offered the opportunity to participate in the open offer on the basis of 1 open offer share for every 10 existing shares.
Primary Health said the proceeds will be used to fund existing development projects and purchase contracts, and to fund transactions from its current acquisition pipeline. It will also aim to pay down sums drawn down on its revolving debt facility.
"I am delighted to announce this fundraising which enables us to continue to deliver our long-term strategy of growing the portfolio through earnings enhancing acquisitions that support our progressive dividend policy, while maintaining gearing at appropriate levels," Managing Director Harry Hyman said in a statement.
Primary Health shares were trading down 6.4% at 103.38 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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