Belgium-based logistics developer VGP has unveiled plans to launch a €200 mln capital increase targeting institutional investors.
The capital raise in cash will be launched by means of a private placement via an accelerated bookbuild offering.
VGP has requested that the trading of VGP shares on the Euronext Brussels and Prague Stock Exchange regulated markets be suspended until the results of the capital increase are published.
VGP CEO Jan Van Geet said: ‘As we announced in our trading update last week, based on our full order book, a diversified and quality tenant portfolio across a broad range of industry segments and strong balance sheet I hope and believe we are well placed to weather the current storm.’
The company will primarily use the net proceeds from the fund raise to increase its financial purchasing power and strengthen shareholders equity, in order to fund its investment pipeline and pursue additional investment opportunities.
Reference shareholders Van Geet and Bart Van Malderen have each committed to subscribe the new shares to be issued at their final issue price for an amount of up to €70 mln and €40.32 mln respectively and in return will receive allocation pro-rata to their existing stakes of 33.81% and 20.16%.
Van Geet said that the capital raising would ‘significantly strengthen’ the firm’s ‘capital base, and provide ourselves additional resources to pursue our strategy of capturing investment opportunities whilst at the same time delivering on a significant pre-committed pipeline’. He added: ‘With a strong capital position, we position ourselves to capture opportunities for new business at attractive margins across the countries in which we operate.’
JP Morgan Securities and KBC Securities are acting as joint global coordinators and joint bookrunners of the capital increase, with Belfius Bank acting as joint bookrunner.