NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
22 June 2017
Successful completion of $500 million institutional placement
Dexus Funds Management Limited (“DXFM”) as responsible entity of Dexus (“Dexus” or the “Group”) confirms today the successful completion of the institutional placement (“Placement”) announced yesterday to fund the acquisitions mentioned in that announcement.
Approximately 49.0 million new Dexus Stapled Securities (“New Securities”) will be issued to institutional investors at a fixed price of $10.20 per security, representing a:
- 3.4% discount to the last traded price of $10.56 on Tuesday, 20 June 2017
- 4.0% discount to the five day VWAP of $10.62 to Tuesday, 20 June 2017
The New Securities will be allotted on Tuesday, 27 June 2017, will rank equally with existing stapled securities on issue and will be entitled to the full distribution for the six months ending 30 June 2017 (“2H FY17 Distribution”).
Darren Steinberg, Dexus CEO said: “We appreciate the support of both new and existing security holders. We are now focused on integrating the acquisitions into our existing portfolio and unlocking value and growth for security holders.”
Security Purchase Plan
As announced yesterday, Dexus is offering a non-underwritten Security Purchase Plan (“SPP”) to eligible security holders. As with the New Securities issued under the Placement, the securities issued under the SPP will rank equally with existing Dexus Stapled Securities, however as they will be allotted on Friday 18 August 2017 (post the ex-distribution date of 29 June 2017) they will not be entitled to the 2H FY17 Distribution of 23.76 cents per Security. The issue price under the SPP will be $9.96 per security, reflecting the Placement issue price less the estimated 2H FY17 Distribution of 23.76 cent per security.
The total amount to be raised under the SPP is subject to a $50 million cap. If demand exceeds the $50 million cap, Dexus intends to scaleback applications received from eligible security holders. However in that situation, Dexus may (in its absolute discretion) decide to increase the cap to reduce or eliminate the need for scaleback.
The SPP is subject to the terms set out in the SPP booklet, which will be released to the Australian Securities Exchange on or about Tuesday 4 July 2017.
Download the PDF to read the full ASX Announcement.