Intu Properties Rights issue to fund shopping spree

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Intu Properties had agreed to acquire a 50 percent interest in Westfield Merry Hill shopping centre and 100 percent of both Westfield Derby shopping centre and Sprucefield retail park for a total of £867.8 million (R15.6 billion) from Westfield Entities and joint venture partners, the listed property firm said on Thursday. The acquisitions would be financed by new debt facilities totalling £423.8m and a fully underwritten rights issue of two new shares for every seven existing shares at £1.80, or R32.28, a new share. The rights issue was intended to raise about £500m. The South African issue price represented a discount of 42.1 percent to the dividend-adjusted closing price of R55.71 on March 19, the last day of trading prior to the rights issue announcement, and a 36.1 percent discount to the theoretical ex-rights share price on the dividend-adjusted closing price on March 19. Intu fell 4.35 percent to R55 on Thursday. – Roy Cokayne

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