11th Feb 2015 10:05
LONDON (Alliance News) - Secure Property Development & Investment PLC Wednesday announced a proposal to raise up to EUR10 million via an open offer to existing shareholders, by issuing up to 29.8 million new shares, almost doubling the number of shares currently in issue.
The company currently has 33.9 million shares on the market. Under the proposed open offer, which it has priced at 25 pence per share, shareholders are being offered 1 new share for every 1.14 existing shares they hold. Any shares not taken up by existing shareholders may be offered to new investors, it said.
Secure Property's shares were untraded Wednesday morning, but last traded at 32.00 pence, meaning the issue price represents a 28% discount to its last traded price. Secure Property said the price also is a 67% to 71% discount to the current range of estimates for its undiluted 2014 net asset value per share
"The open offer reflects the directors' desire to allow all qualifying shareholders the opportunity to participate in the proposed open offer on a pre-emptive basis, in order to provide the company with additional capital to acquire income producing assets that will further strengthen its portfolio and enhance future potential returns to shareholders," the company said in a statement.
The company said the open offer it not being underwritten and is not a rights issue.
Secure Property said that following its recent recapitalisation and restructuring, its focus is now to grow its activities in south east Europe in order to take advantage of "attractive opportunities" in the real estate market.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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