Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


DNZ Property sells $60M of shares at 1.8% discount

DNZ Property sells $60M of shares to institutions at 1.8% discount

By Paul McBeth

May 23 (BusinessDesk) - DNZ Property Fund, which reported a 14 percent decline in annual distributable earnings yesterday, completed its $60 million placement to institutional investors at a 1.8 percent discount.

The bookbuild process set the price at $1.68 a share yesterday, a small discount to the last trading price at $1.71 before the shares were halted. The placement will be followed by a $20 million share purchase plan next month priced at the lower of $1.6575 and the average end of day price over the 10 working days during the offer, the Auckland-based company said in a statement.

The $80 million raised will go towards two acquisitions in Auckland, as the property investor looks to re-weight its portfolio in the North Island, with a particular focus in the country’s biggest city.

“Interest from our existing shareholders and new investors has shown strong support of DNZ’s business strategy, portfolio strength and the recent retail sector acquisitions,” chairman Tim Storey said.

Because one of the acquisitions will immediately add to DNZ’s earnings, the placement and share purchase plan aren’t expected to dilute returns, and the company forecasts an annual 9 cents per share dividend in 2014.

The shares slipped 0.6 percent to $1.70 when they resumed trading today, and have gained 7.9 percent this year. The stock is rated an average ‘hold’ based on five analyst recommendations compiled by Reuters, with a median target price of $1.78.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news