20-11-2014, 11:05 AM
(18-11-2014, 10:57 PM)kelvesy Wrote: Each of KIFM and CSIM believe the transactions to be DPU accretive4 for existing unitholders of KIT and CIT, respectively. In addition, prior to the completion of the Combination, existing CIT unitholders will receive a one-time distribution of S$30 million. After the completion of the Combination but before the equity fund raising, the Combined Trust will make a one-time S$30 million distribution to its expanded base of unitholders.
To fund the KMC Acquisition and its related expenses, an equity fund raising of up to S$525 million will be undertaken by issuing new units through a combination of placement to institutional and other investors, as well as a preferential offering to existing unitholders. The offering price, as well as further details of the equity fund raising, will be determined subsequently.
Keppel and Temasek intend to subscribe for their pro-rata entitlements under the preferential offering and do not intend to dispose of their units in the Combined Trust from the date of completion of the Combination to a date no earlier than 12 months following the completion of the equity fund raising exercise.
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Can someone tell me why issue out dividends then later ask for money back via preferential offering or equity placement?
To make it attractive to say yes to merger. Asking money back has a purpose to buy asset. So attractive as rights issue always priced low.