The balance will be deployed for pursuing future investment opportunities, with a focus on retail, car park, office and logistics sectors across Asia Pacific. Link has said none of the net proceeds has been earmarked for any specific investment opportunities.
On Feb 10, Link announced a one-for-five rights issue at HK$44.2 per rights unit. This is a 26% discount to the last traded price of HK$62.8 per unit as at Feb 9. The theoretical-ex price (TERP) is HK$59.7 per unit. The rights issue will raise HK$18.8 billion. George Hongchoy, CEO of Link adds that the rights issue is not related to the Singapore acquisition where local banks have lined up to finance the transaction.
Approximately 40% to 50% of the net proceeds will be used to repay HK$7-8 billion of existing debt and around HK$1-2 billion will be used to rest revolving credit facilities. “Given the high interest rate environment, we will be able to save financing costs,” says Ng Kok Siong, CFO of Link.
