On 19 Mar, Suntec Reit announced a private placement of 218m new units (9.6% of its share base) at an issue price of S$1.605. Net proceeds amount at about S$341.4m, after deducting underwriting, selling, management-fee and other expenses. The issue price represents a 5.3% discount to its last closing price. The proceeds will be used to pay down debt.
The time for this private placement is intriguing. Only in Feb, there was a noteworthy major shareholder transaction. A Chinese billionaire Tong Jin Quan has acquired 5.1 million units of Suntec REIT, bringing Tong’s indirect stake to 114.4 million units, or 5.04% of the REIT. With that transaction, he is now the second-largest shareholder of Suntec REIT, after Suntec City Development. ( See the article below from The Edge)
From the daily price chart, Suntec was on a rising trend since Dec'13 ......
