Mainboard-listed hospitality and property group, OUE, has said that Golden Concord Asia – OUE’s controlling shareholder – will sell almost 52 million shares.
The shares represent 26.5 percent of the total issued share capital of OUE and will go at an indicative price ranging from S$11.50 to S$14 per share.
The share placement exercise is conducted concurrently with the plans of OUE to issue nearly S$200 million of convertible notes, which is due in 2015.
Golden Concord is also an investment unit of Lippo Group.
OUE announced the cash-call last week, saying it will use the net proceeds to purchase property sites for its Singapore development plans.
Separately, the company also announced it has already adopted an annual cash dividend policy by paying annual dividends of around 50 percent of its profit after tax.
It will be accomplished after fair value gains have been adjusted out and after OUE’s expansion plans, capital requirements and other funding requirements have been considered.
The company said it has considered its previous dividend payouts and performance for determining the policy.
It believes that the policy, with its intention to optimize returns to shareholders, will allow good balance sheet management and enforce greater accountability to shareholders.