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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news