UK listed real estate investment trust Liberty International plc announced on Monday that it plans to raise gross proceeds of approximately £500-600 million by means of a firm placing and open offer of new ordinary shares.

The new shares will be issued at the issue price determined by a market book build process which commenced Monday and is expected to close on Tuesday 28 April.

The Gordon Family Interests, which currently hold 79.2 million ordinary shares, 21.7% of the current issued ordinary share capital, have agreed to subscribe for £30 million of new shares. The Gordon Family Interests have also committed to subscribe for an additional £10 million of new shares under their entitlement as shareholders in the open offer.

Excluding the Gordon Family Interests' subscriptions of £30 million, the £470-570 million issue of new ordinary shares will comprise a £235-285 million firm offer of new ordinary shares to placees and a £235-285 million offer, subject to clawback, of new ordinary shares to placees, each at the issue price.

Admission is expected to occur and dealings in the new ordinary shares are expected to commence on the London Stock Exchange at 08:00 on 28 May. The new ordinary shares are expected to be listed on the Johannesburg Stock Exchange at 09:00 (South African time) on 28 May 2009.

The new ordinary shares will, when issued and fully paid, rank pari passu in all respects with the existing ordinary shares.

The issue of the new shares under the capital raising is conditional on the passing of a special resolution by shareholders at an Extraordinary General Meeting expected to be held at 10:00 on 22 May.

The proceeds of the capital raising will reduce net indebtedness, increase the group's available cash and undrawn committed financing facilities, improve financial ratios and increase financial flexibility.

Merrill Lynch International and UBS Investment Bank are acting as joint sponsors and brokers, HSBC Bank plc, Merrill Lynch and UBS Investment Bank are acting as joint lead managers and Barclays Capital and RBS Hoare Govett are acting as joint co-managers on behalf of Liberty International in respect of the Capital Raising.

Goldman Sachs International is acting as financial adviser to the Company in relation to the Capital Raising.

Source: I-Net Bridge