Wheelock Singapore plans two-for-one rights issue

Wheelock Properties (Singapore), a subsidiary of Hong Kong-listed Wheelock Properties, announced plans yesterday for a two-for-one rights issue of 82.5 Singapore cents ($3.759) per share and a net cash dividend of S$1.65 per share.

The rights issue will transform a substantial amount of the company's retained earnings into paid-up capital.

The Hong Kong parent yesterday agreed to buy 601.5 million rights shares from its Singapore subsidiary for S$496.2 million.

The parent's payment will be offset by a dividend of the same amount that it will receive from its subsidiary, as the parent owns 300.75 million shares, or 75 per cent, of the Singapore-listed firm.

Wheelock Properties has undertaken to buy all the shares not taken up in its Singapore subsidiary's rights offer.

The price of each rights share, at 82.5 Singapore cents, represents an 80 per cent discount to the last traded price of S$4.06 on the Singapore exchange on November 11.