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Key Points:
- Successful Share Placing: British Land has priced a non-pre-emptive placing of 69,512,111 new shares at 422 pence each, aiming to raise approximately £301 million for acquisitions.
- Strong Support from Shareholders: The placing has received backing from both existing and new shareholders, demonstrating confidence in the company's strategic direction.
- Expected Admission: Admission of the new shares is anticipated on October 7, 2024, increasing the total number of shares in circulation to 999,000,049.
British Land (LSE:BLND) has announced the successful pricing of a non-pre-emptive placing of new ordinary shares, totaling 69,512,111 shares at an issue price of 422 pence each. This placing, which was initially announced on October 2, 2024, is aimed at raising funds to acquire a portfolio of retail parks anticipated to exhibit strong rental growth prospects.
Chief Executive Simon Carter expressed his satisfaction with the results of this equity placing, emphasizing its significance for British Land. "We are delighted with the outcome of this important equity placing for British Land, which we are using to acquire this attractive portfolio of retail parks with strong rental growth prospects," he stated. He also extended gratitude to both existing and new shareholders for their support in the company’s ongoing strategic execution.
The placing was facilitated by joint global coordinators Morgan Stanley & Co. International plc and UBS AG London Branch, with Goldman Sachs International acting as a joint bookrunner. The total gross proceeds from the placing are expected to be approximately £301 million, which will support the company's acquisition plans.
In addition to the placing, a retail offer made via the PrimaryBid platform attracted subscriptions for 1,577,937 new ordinary shares at the same placing price. Furthermore, certain directors of British Land plan to subscribe for a total of 137,261 ordinary shares at the placing price following the publication of the company’s interim results for the period ending September 30, 2024.
The placing price of 422 pence per share reflects a discount of 3.6% from the closing price of 437.80 pence on October 2, 2024. The total number of shares issued through the placing, retail offer, and director subscriptions represents approximately 7.7% of the existing issued ordinary share capital of British Land prior to the placing.
Prior to the offering, British Land consulted with several of its major shareholders to ensure compliance with pre-emption principles during the allocation process.
Applications have been submitted to the Financial Conduct Authority (FCA) and the London Stock Exchange (LSE) for the admission of the newly issued shares to the official list and for trading on the LSE’s main market. Admission is expected to become effective by 8:00 a.m. on October 7, 2024. The completion of the placing is contingent upon admission becoming effective and the terms of the placing agreement between the company and the banks remaining in effect.
Once issued, the placing shares, retail offer shares, and subscription shares will be fully paid and rank equally with existing ordinary shares, including the right to receive all dividends and distributions declared after the date of issue.
Following the admission, the total number of shares in British Land will rise to 1,010,266,294, with 11,266,245 shares held as treasury shares. Consequently, the total number of voting shares in circulation will be 999,000,049. Shareholders can use this figure as a denominator to determine any necessary notifications regarding their interest in the company, in accordance with the Disclosure Guidance and Transparency Rules.
