Mirvac $350 million Capital Raising

Submitted by Share Trading on 8 April, 2010 - 11:21

Mirvac (MGR) has raised $350 million in their institutional capital raising. The raising has been oversubscribed with 250 million shares placed at $1.40 each. The extra capital increases liquidity to $1.4 billion and increases cash on hand to $400.3 million.

Mirvac Group released information to the market yesterday that it was granted exclusive due diligence on Westpac Office Trust (WOT) in a move to possible acquire the property fund. The Westpac Office Trust has a market capitalisation of about $390m, and should the deal proceed, it will be one of the largest takeovers for the listed property sector this year. Mirvac had been in a trading halt while the capital raising takes place.

Managing Director of Mirvac, Nick Collishaw has said he was pleased with the "strong support our existing institutional securityholders have shown for the equity raising. The institutional placement significantly strengthens the group’s balance sheet. We are now well positioned to fast track our existing commercial and residential development pipelines, and take advantage of new external opportunities in residential development and Australian investment grade real estate."

The second phase of the capital raising will be available to security holders and are invited to participate up to $15,000 per security holder. The offer will open at 0900 AEST on April 15, and is expected to close at 17:00 AEST on May 6.

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