Segro has confirmed that it is in talks about a potential fund raising to strengthen its balance sheet. It was responding to media reports that it is poised to launch a discounted rights issue to raise £300-£400 mln (EUR 335--446 mln).
Segro has confirmed that it is in talks about a potential fund raising to strengthen its balance sheet. It was responding to media reports that it is poised to launch a discounted rights issue to raise £300-£400 mln (EUR 335--446 mln).
In a short statement, the UK real estate investment trust (REIT) focused on industrial property said: 'Segro notes the recent press coverage and confirms that discussions are being held about a possible equity capital raising. Any decisions will be communicated to shareholders when appropriate.'
The Financial Times reported that Segro would unveil a fully underwritten equity raising midweek to raise between £300 mln and £400 mln, 'almost matching its market capitalisation of £427 mln'. Analysts at JPMorgan estimated that Segro could raise £390 mln.
Several major UK REITS have already announced equity raising, totalling £2 bn.
Last week, Segro said it had signed agreements with syndicate banks and bilateral lenders that provide £1.7 bn (EUR 1.9 bn) of debt - both drawn and undrawn - to permanently increase the maximum gearing covenant (net debt to net worth) in these facilities, from 125% to 160%.
