DNZ to tap shareholders for $35 million

Tuesday 8th June 2010

DNZ Property Fund is considering a $35 million capital raising, just days after it agreed to buy the management contract for the same amount.

Chairman Tim Storey said that following recent meetings with shareholders and shareholder representative groups, the Board considers it appropriate to undertake a small capital raising that would be made available as a priority to all existing shareholders.

He says shareholders' preference was for a smaller capital raising that would be accessible to as many shareholders as possible.

"Shareholders also indicated the structure of the capital raising should also minimise the dilution affect for those who do not take part in the capital raising."

"With those parameters in mind the Board has settled on a $35 million pro rata offer to be made to existing shareholders followed by a book build for shares not subscribed for by the company's existing 8,000 plus shareholder base. This offer structure had been designed to enable maximum participation by existing shareholders with the funds raised to be used to reduce the company's debt levels."

He believes shareholders will support this capital raising.

Earlier story here

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