Property developer Great Eagle Holdings has announced a $1.08 billion rights issue to help fund the purchase of hotels in the United States.
The company said it has agreed to purchase a hotel in Boston and is negotiating buying interests in six more across the US.
The rights issue will be offered on a one-for-eight basis at $18.80, a 17.9 per cent discount to last Friday's closing price.
Subscribing shareholders will also be given a free warrant which can be exchanged for one share at an exercise price of $18.80.
The issue will increase the companies share capital from $300 million to $400 million.
Great Eagle says it will spend up to $608 million buying Vintage Holdings limited, which owns hotels and commercial properties in the United States.
Its main assets are the Le Meridien Hotel in Boston, office and commercial portions of the Metropolitan Tower in New York city and an office building in Walnut Creek in California.
