11th Feb 2020 11:17
(Alliance News) - Shopping centre owner intu Properties PLC said Tuesday Link Real Estate Investment Trust has decided against taking part in an equity raise.
intu shares slumped 20% on Tuesday to 13.86 pence each in London, while Johannesburg stock was down 8.8% at ZAR2.92.
The company on Monday said Link Real Estate, which is listed in Hong Kong, was part of the negotiations to raise cash at the end of February, which would see it become a new shareholder in intu.
intu also said talks with existing shareholders, including Peel Group, were "constructive". Peel Group, which owns 27% of intu, is owned by businessman John Whittaker.
"Link Real Estate has informed intu of its intention to no longer participate in a recapitalisation of the company. intu remains engaged with shareholders and potential new investors in relation to a proposed equity raise," said the firm on Tuesday.
The company is currently looking to fix a struggling balance sheet and has made a number of disposals recently to reduce debt.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
INTU.L