Australian shopping centre developer Westfield said on Tuesday it was launching a fully underwritten placement of new shares to raise A$2.9 bn (EUR 1.4 bn) to reduce its debt levels.
Australian shopping centre developer Westfield said on Tuesday it was launching a fully underwritten placement of new shares to raise A$2.9 bn (EUR 1.4 bn) to reduce its debt levels.
The group will issue around 276 million securities at an issue price of A$10.50 per share. Proceeds will be used to further strengthen the group's balance sheet and for potential acquisitions.
Westfield said the capital-raising will result in the group's gearing ratio falling by 4% to approximately 36%. The group's forecast operational segment earnings and distribution per security for 2009 (issued on 27 January 2009) have been revised and are now expected to be in the range of 94 cents to 97 cents, assuming that the proceeds from the share issue are used entirely to retire debt.
Westfield will release its full-year earnings figures for 2008 on 26 February.
