Keppel Land this morning announced a proposal for a renounceable rights issue to raise approximately $712.3 million. The offer entitlement will be nine Rights Shares for every ten existing ordinary shares held. Up to 653,462,397 new shares will be issued at a price of S$1.09.
Based on the closing price of S$1.88 on 23th April 2009, the theoretical ex-rights price will be S$1.50 per share while the NTA will be S$2.35 per share. Keppel Corporation has agreed to take up its full entitlement of Rights Shares based on its interest in 52.64% in Keppel Land.
The key dates of the Rights Issue are not available yet as the implementation of this Rights Shares Issue is subject to the approval of SGX, shareholders and lodgement of the offer information statement (OIS) with MAS.