Singapore Press Holdings (SPH) plans to list its retail properties in July to raise an estimated $1 billion in net proceeds and return 18 cents per share in a special dividend to shareholders, the media and property group announced yesterday.
SPH, which owns The Business Times, is targeting a $540 million initial public offering (IPO), including over-allotments of a real estate investment trust (Reit) holding the Paragon and The Clementi Mall shopping centres.
SPH plans to retain a stake of about 70 per cent in the Reit, valuing the initial market capitalisation of the Reit at $2.2 billion.
The sale of those malls to the Reit will raise net proceeds of about $1 billion for SPH, after taking out transaction costs and the discharge of encumbrances and payments to minority interests. The Reit will also bear a debt facility of about $900 million.
The proposed special dividend will use about $291 million of the proceeds, leaving about $757 million that will be used for working capital and to pursue "growth strategies across its property, media and other businesses", SPH said.
SPH gapped up in the morning to high of 4.56 then fading the gap. Currently trading at 4.48, +8c. 1.10pm. 4.35-4.48 is its consolidation range, more upside is expected if it traded above the range.
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