MPS – SGX
MacarthurCook Property Securities Fund Renounceable Rights Issue
The Directors of MacarthurCook Fund Management Limited (the “responsible entity”) are pleased to announce a 1 for 3 Renounceable Rights Issue (the “Rights Issue”) for holders of units in the MacarthurCook Property Securities Fund (the “Fund”).
The Issue price for new units issued under the Rights Issue will be A$1.05 (S$1.32, calculated using the Australian-Singapore exchange rate of as at 1.2610, which was the exchange rate as at 7 September 2007).
The Rights Issue will be available to unitholders who are resident of Australia, New Zealand, or Singapore as at the Record Date.
The Rights Issue seeks to raise up to A$51.08 million before expenses. Proceeds from the raising will be used to repay debt. However, the Fund will redraw debt in order to take advantage of attractive investment opportunities as they arise.
MacarthurCook Fund Management Limited (in its personal capacity) will underwrite any shortfall in the subscription for New Units under the Rights Issue at the Australian Issue Price of A$1.05, up to a maximum subscription of 4,761,905 New Units, for an underwriting fee of $50,000 (plus any applicable GST). Therefore, the minimum subscription amount under the Rights Issue will be A$5 million (subject to the terms of the underwriting agreement).
The Rights Issue will enable investors in the Fund to increase their unitholding at a potential discount to the prevailing market price of the Fund’s units, without incurring transaction charges such as brokerage. New units issued under the Rights Issue will rank the same as ordinary units of the Fund. New units will not be entitled to the distribution for the period ending 30 September 2007, as they will be issued after the record date for that distribution, but will be entitled to the distribution for the period ending 31 December 2007 and to all distributions after that date.
Based on the increased forecast distribution for the 2008 financial year of 10.5 Australian cents per existing unit and the Rights Issue unit price of A$1.05, an Australian unitholder that is issued a new unit under the Rights Issue is expected to receive distributions totalling 7.875 Australian cents on the new units for the remainder of the 2008 financial year. This represents a forecast annualised income return of 10.38% pa per new unit for Australian investors (assuming distribution reinvestment).
A Singapore unitholder that is issued a new unit issued under the Rights Issue is expected to receive distributions totalling 8.74 Singapore cents on the new units for the remainder of the 2008 financial year (based on a S$/A$ exchange rate of 1.2610, assuming a 60% tax deferred status and after applying 30% withholding tax). This represents a forecast annualised income return of 8.80% pa per new unit for Singapore investors (with no distribution reinvestment assumed).
A Rights Issue document and personalised application form for the Rights Issue will be despatched to unitholders on or about 25 September 2007. The offer period will close on 12 October 2007. Subject to the terms of the Rights Issue, all Australian, New Zealand and Singaporean unitholders who are registered at 7.00pm on 20 September 2007 (the “Record Date”) will be sent the information brochure and are eligible to participate in the Rights Issue.
Full details of the unitholders entitled to participate are set out in the Rights Issue document. The material terms of the underwriting agreement are also set out in the Rights Issue document.
Participating unitholders will also be entitled to trade their rights on the ASX on and from Friday, 14 September 2007 and on the SGX on and from Tuesday, 25 September 2007.
Applications must be made on the application form accompanying the Rights Issue document. Full details of terms and conditions of the Rights Issue are contained in the Rights Issue document which will be forwarded to all unitholders shortly.
2007 Financial Result Highlights
In a separate announcement made to the ASX and SGX on 31 August 2007, the 2007 financial year results were released.
The Fund has posted a net profit for the year of A$34.3 million – an increase of approximately 136% over the previous 12 month period. For the 2007 financial year earnings were A25.6 cents per unit compared with A13.4 cents per unit in the previous year, on a weighted per unit basis.
It was also announced on 26 June 2007 that ordinary distributions to unitholders (before any withholding tax) for the 2008 year are forecast to increase to A10.5 cents per unit.
2007 Results Highlights:
• Total Return of approximately 19% to Australian Investors for the year to 30 June 2007.
• Total Return of approximately 14% to Singapore Investors since listing 22 December 2006.
• Total Net Profit for the period to 30 June 2007 increased by approximately 136% when compared to the previous year.
• Earnings per unit (weighted basis) exceeded distributions made to unitholders by approximately 169%, or 16.1 Australian cents per unit.
• Net Tangible Asset backing has grown by approximately 13% from A$0.98 at 30 June 2006 to A$1.11 per unit as at 30 June 2007.
• Market Capitalisation has increased approximately 29% from A$122 million on 30 June 2006 to A$158 million at 30 June 2007.
• Closing Unit Price on the ASX increased 10% for the year to 30 June 2007.
• Closing Unit Price on the SGX increased 9.6% since listing 22 December 2006 to 30 June 2007.
• Distributions per unit for the 2007 financial year for Australian investors were on a par with the forecast at 9.5 Australian cents.
• Distributions per unit for the 2008 financial year for Australian investors are forecast to increase to 10.5 Australian cents, or for Singapore investors this equates to approximately 11.65 Singapore cents, assuming an A$/S$ exchange rate of 1.2610, a tax deferred status of 60% and after 30% withholding tax.
The results for this period are a result of the successful investment strategy employed by the Fund. With the Fund’s secondary listing on the Singapore Stock Exchange, the Fund was able to expand its portfolio. The results for the financial year show a significant increase in earnings per unit and we are also pleased to see the growth in value of the Fund’s investments.
Source : SGX