Mainboard-listed Cambridge Industrial Trust (CIT) has expressed its opposition to the recapitalisation plan of MacarthurCook Industrial REIT (MI REIT).
CIT, MI REITs largest unitholder with an almost 10 percent share, said it will vote against the said proposal.
MI REIT announced earlier this month that it would issue new shares to AMP Capital, the company’s new investor, as well as to AIMS Financial and other existing investors in order to raise cash.
CIT said MI REITs recapitalisation proposal will likely destroy unit value for its existing unitholders.
CIT noted that MI REITs proposal of 28 cents per unit to the selected institutional investors may be described as "massively value destructive". With the said price, it represents a 70.2 percent discount to the net asset value backing of 94 cents per unit.
It also said that unitholders would rather have MI REIT wound up their assets than support its plan of recapitalisation.
CIT added that it will call for a resolution to remove MacarthurCook’s investment managers and instead appoint the management of CIT as MI REIT’s managers. It said CIT will deliver a better and more compelling output for MI REIT unitholders than the said proposal.
The voting for the recapitalisation proposal of MI REIT will be on November 23.