Redefine International has finally announced the terms of its long-awaited capital-raising. The high-yielding property company wants to raise £127m by issuing about 490m shares at 26p each. Most of the money will come from existing shareholders - above all the South African company Redefine Properties, which owns 72 per cent of its UK-listed namesake - via an open offer. The rest (£23.2m) will come from new shareholders via a firm placing, as the company wants to expand its institutional shareholder base.
This capital-raising has been on the cards ever since Redefine's daring reverse takeover of distressed property fund Wichford last year. The deal was conditional on Redefine's parent company supporting a major equity refinancing of Wichford's debt facilities, two of which expire next month. The new shares, debt renegotiations and further asset sales should eventually reduce Redefine's loan-to-value ratio from 82.5 per cent to under 60 per cent.