Business
Announcement re: Rights Issue
Announcement re: Rights Issue.
About this update from Land Securities Group Plc
[{"type":"text","content":"\n RNS Number : 5645N Land Securities Group Plc 19 February 2009 \n \nTHE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM THE UNITED STATES AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.\n\n19 February 2009 (Embargoed until 7.00a.m.)\n\nPress Release \n\nLAND SECURITIES GROUP PLC\n\nPROPOSED RIGHTS ISSUE TO RAISE NET PROCEEDS OF APPROXIMATELY £755.7 MILLION\n\nThe Board of Land Securities today announces a fully underwritten 5 for 8 Rights Issue at a price of 270 pence per share to raise net proceeds of approximately £755.7 million, through the issue of 290,773,925 New Ordinary Shares. The Rights Issue is subject to approval by shareholders at a General Meeting to be held on 9 March 2009.\n\nThe Rights Issue will:\n\n\n\nstrengthen the Company's balance sheet \n\n\nhelp protect against the downside \n\n\nprovide the Group flexibility to react quickly to pricing and timing opportunities \n\n\nCommenting, Francis Salway, Group Chief Executive said:\n\n'We have a good track record of creating value for shareholders through the property cycle and have decided to seek further capital at this stage to ensure that the Company's balance sheet is appropriately structured. This will help protect the business against the downside risk of further falls in property values and thereafter position the business to exploit attractive market opportunities. At a time of raising fresh capital, the Board has determined that it would be prudent to reset its current dividend to a level that we believe is sustainable and provides the potential for future growth.'\n\nBackground to the Rights Issue\n\nLand Securities identified the change in market conditions in 2007 and has since taken actions to protect shareholder value including: \n\n\nthe sale of over £3.4 billion of assets\n\n\nthe deferral of potential development projects to reduce s...