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UK’s Liberty Raises $862 M In Share Issue

29 April, 2009

 Sells 200 mln new shares at 310p/shr.

* Issue at 28 pct discount to Monday’s closing price

* Gordon family subscribes to 12.9 mln shares

Britain’s biggest mall owner Liberty International has raised 592 million pounds ($862 million) in a share sale plan, designed to shore up its bruised balance sheet and avert possible loan covenant breaches.

The mall owner has an India In 2005, apparel maker Provogue India has sold 25 per cent of its equity stake in Prozone Enterprises, its real estate subsidiary, to UK’s Liberty International, for Rs 202.5 crore.

The owner of London’s landmark Covent Garden Market said in a statement on Tuesday it issued 200 million new shares of 310 pence each, at a 28 percent discount to the stock’s 433.25 pence closing price on Monday when the deal was announced.

The family interests of founder Donald Gordon, which owns 21.7 percent of Liberty, have subscribed to 12.9 million of the new shares for a 40 million pound investment, Liberty said.

The issue raised 620 million pounds in gross proceeds before expenses, part of which will go towards reducing 4 billion pounds in net external debt, it said.

At 1545 GMT, Liberty shares fell 1.8 percent to 425.5 pence, extending Monday’s 4 percent decline.

Liberty is the last UK property major to seek fresh funding from shareholders after peers Land Securities, British Land and Hammerson  tapped more than 2 billion pounds from the equity market in February.

Merrill Lynch and UBS Investment Bank are joint sponsors and brokers, in the share issue, while HSBC Bank, Merrill Lynch and UBS are joint lead managers, and Barclays Capital and RBS Hoare Govett are co-lead managers, Liberty said.

Goldman Sachs acted as financial adviser, it added.

 


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UK’s Liberty Raises $862 M In Share Issue

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