Charter Hall successfully completes institutional equity raising

28/05/2009 - PDF Version Available

Charter Hall Group (CHC) is pleased to announce the successful completion of the institutional component of its $49 million 2 for 7 non-renounceable entitlement offer and Placement ("Offer") at $0.33 per security. The institutional component of the Offer raised approximately $29 million.

The Institutional Entitlement Offer was heavily oversubscribed with demand from existing and new investors.

The proceeds of the equity raising will:

  • Reduce CHC's pro forma balance sheet to zero;
  • Provide positive cash reserves;
  • Reduce look-through pro forma gearing and 34%

Mr Kerry Roxburgh, Chairman of Charter Hall Group said: "We are delighted with the support our existing institutional securityholders have shown alongside the strategic investment made by the Gandel Group. The proceeds from the equity raising will strengthen our balance sheet and provide CHC with financial flexibility".

Settlement of the New Securities issued under the Placement and Institutional Entitlement Offer is scheduled to occur on 11 June 2009, with trading expected to commence on 12 June 2009.

The Entitlement Offer has been fully underwritten by Macquarie Capital Advisers, Goldman Sachs JBWere and the Gandel Group. 

Retail entitlement offer 

The retail component of the entitlement offer ("Retail Entitlement Offer") opens on Wednesday, 3 June 2009 and is expected to close at 5.00pm (Sydney time) on Wednesday, 18 June 2009. Eligible retail securityholders will have the opportunity to participate at the same price and offer ratio as under the Institutional Entitlement Offer.

The Retail Entitlement Offer will proceed according to the timetable set out in the announcement released to ASX on 27 May 2009. A booklet in relation to the Retail Entitlement Offer will be mailed to securityholders on 3 June 2009. Eligible retail securityholders wishing to participate in the Retail Entitlement Offer will need to complete the Entitlement and Acceptance Form which will accompany the booklet.

All New Securities will rank equally with existing securities from allotment and will be entitled to the 2H FY09 distribution. Charter Hall reconfirms 2H FY09 distribution guidance of 1.0 cents per security.

Securityholder enquiries

For further information regarding the Retail Entitlement Offer, please call the Charter Hall Entitlement Offer Securityholder Information Line on 1300 664 498 (for callers within Australia) or 61 2 8280 7787 (for callers outside Australia) at any time from 8.30am to 5.30pm (Sydney time) Monday to Friday during the Retail Entitlement Offer period or visit Charter Hall's website at www.charterhall.com.au.


This information has been prepared by Charter Hall Funds Management Limited ABN 31 082 991 786; AFSL 262861 ("CHFML") for information purposes only. This website is not an offer to sell or a solicitation or an offer to subscribe or purchase or a recommendation of any securities referred to herein and the information has not taken into account any potential investors' personal objectives, financial situation or needs. Before investing, you should consider your own objectives, financial situation and needs or you should obtain financial, legal and/or taxation advice.

CHFML does not receive fees in respect of the general financial product advice it may provide, however they will receive fees for operating the schemes of which it is the responsible entity ("Schemes") which, in accordance with the Schemes' Constitutions, are calculated by reference to the value of the assets of the Schemes. Entities within the Charter Hall Group may also receive fees for managing the assets of, and providing resources to the Schemes. For more detail on fees, see our latest annual report. To contact us, call 1300 365 585 (local call cost).