Property group Hammerson on Aug. 6 announced a plan to raise 825 million pounds through a 552 million pound rights issue and the disposal of its stake in a shopping outlet unit to one of its largest shareholders.
The UK shopping mall operator said the value of its assets fell by 11.7% to 7.7 billion pounds in the six months to the end of June 2020, and its loan to value ratio was 51%. Following the rights issue and asset sale, it expects its loan to value ratio to be 42%. Two shareholders, APG Asset Management and Lighthouse Capital, who own 20% and 14% respectively of Hammerson shares, have agreed to take up their share of the rights issue, which is fully underwritten. APG will also acquire the majority of Hammerson’s stake in the VIA Outlets portfolio for 301 million euros.
As part of the rights issue, Hammerson will consolidate its share capital by exchanging one new share for five existing shares. Shareholders will then have the opportunity to buy 24 new shares for every new share they own, at a price of 15 pence per share.