Secure Property Development & Investment is planning an issue of up to 29,719,890 new ordinary shares at 25p by way of an open offer to shareholders. The open offer shares are available on the basis of 1 new shares for every 1.14 existing shares held but shareholders can apply for more than that if they wish (up to half of all the shares being issued). Any shares not taken up under the open offer can be sold to new investors on “terms that the Directors deem appropriate”.
The issue is dilutive (they estimate at a maximum, by 46.7%) to existing shareholders that don’t take up their full entitlement under the open offer as the issue price is a 20.6% discount to the closing middle market price of 31.5p on 10 February 2015 and a discount of between 67% and 71% to the current range of estimates for undiluted 2014 NAV per share (subject to audit confirmation).
The statement says that the Ukrainian crisis means that the company’s existing investments in the country are likely to be written down by 25%-30% which would mean that the NAV would end up between 75p and 85p.
They want to use the money they raise to acquire income generating industrial, retail and commercial property assets in Bulgaria and Romania and, maybe, in Greece, if the economic situation there becomes clearer.
SPDI : Secure Property Development aiming to raise €10m