Landmark REIT (previously Lippo Malls Indonesia Retail Trust)

[weijian]

Well, only 57.72% - 32.32% = 25.4% take-up from the remaining. It is interesting there is still a sizeable old faithful.

1. RESULTS OF THE RIGHTS ISSUE

LMIRT Management Ltd., in its capacity as manager of Lippo Malls Indonesia Retail Trust (“LMIR Trust” and as manager of LMIR Trust, the “Manager”) wishes to announce that valid acceptances and excess applications (excluding excess applications by Subscribing Entities pursuant to the Sponsor Irrevocable Undertaking) for a total of 2,702,879,113 Rights Units, representing approximately 57.72% of the total number of Rights Units available under the Rights Issue of 4,682,872,029 Rights Units, were received as at the close of the Rights Issue on 14 December 2020.

The valid acceptances received include the acceptances by BIL and the Manager of their aggregate pro rata entitlements of 1,513,382,249 Rights Units, collectively representing approximately 32.32% of the total number of Rights Units available under the Rights Issue

https://links.sgx.com/FileOpen/20210118_...eID=645410

[CY09]

4 years on, another 117 for every 100 share rights, at half the theoretical trading price.

https://links.sgx.com/FileOpen/LMIRT%20-...eID=869398

The raised fund will be used to repay 2026 maturing debt and fund AEI. The rights will not be underwritten; likely the sponsor will have to subscribe for the excess and it will take their shareholdings above 50%.

NAV will be severely diltued to 3 cents per unit post rights. However, my personal take is that the asset price of the properties are overvalued too. True NAV of this REIT is likely less than 1 cents per unit

My thoughts is that for this round, it is likely less than 100% of the rights will be subscribed with the sponsor having to subscribe

[CY09]

Its interesting to learn post 2021 rights issue, Lippo managed to sell a 11.4% stake to Tokyo Century at $67.4 milliion.

It has lost 89% of the value Tokyo Century invested in. I am curious for the upcoming 2025 rights, will Tokyo Century participate in hopes it can narrow its losses.

Currently, the rights are trading at 0.1 cents and the share prices have fallen to 0.8 cents. This is a very low price and lower than the theoretical trading price.

It will be interesting to see retail's take up rate for 2025 rights. If the popularity remains as low as 2021, Lippo will own a large stake on it and how the tycoon acts will change since he has more skin in the game.

[CY09]

https://links.sgx.com/FileOpen/_LMIRT_FO...eID=873347

Post rights, Tokyo Century (the second largest) did not subscribe to its rights and got diluted down to 5.2%.

https://links.sgx.com/FileOpen/_LMIRT_Fo...eID=873250

2. However, the Riady family did not subscribe to excess rights and maintained their share ownership at around 48%.

In the results of the rights shares, only 69% of unitholders agreed to subscribe to their rights. The remaining 31% rights were issued to excess application applied for by minority unitholders with the Riady family electing not to take excess units, maintaining only their 48% stake. This suggests the controlling shareholder not putting more skin into the game and a poor sign that the REIT will likely trade at its low valuations

[ghchua]

2. However, the Riady family did not subscribe to excess rights and maintained their share ownership at around 48%.

In the results of the rights shares, only 69% of unitholders agreed to subscribe to their rights. The remaining 31% rights were issued to excess application applied for by minority unitholders with the Riady family electing not to take excess units, maintaining only their 48% stake. This suggests the controlling shareholder not putting more skin into the game and a poor sign that the REIT will likely trade at its low valuations

Hi CY09,

I disagree with your comments above. If you refer back to their rights issue result announcement below:
https://links.sgx.com/FileOpen/LMIRT_Res...eID=872715

And I extract the relevant parts of the announcement:
1.1 Level of Subscription LMIRT Management Ltd., in its capacity as manager of Lippo Malls Indonesia Retail Trust (“LMIR Trust” and as manager of LMIR Trust, the “Manager”) wishes to announce that valid acceptances and excess applications (excluding excess applications by Subscribing Entities pursuant to the Sponsor Irrevocable Undertaking) for a total of 10,928,074,376 Rights Units, representing approximately 121.35% of the total number of Rights Units available under the Rights Issue of up to 9,005,267,676 Rights Units, were received as at the close of the Rights Issue on 16 January 2026

Pursuant to the Sponsor Irrevocable Undertaking, the Subscribing Entities have made excess applications for the Excess Rights Units such that the total number of the Allotted Rights Units and the Excess Rights Units applied for by the Subscribing Entities is equivalent to 8,571,428,571 Rights Units, being approximately 95.18% of the total number of Rights Units.

1.2 Allotment of Rights Units for Excess Rights Units Applications The balance of 2,712,972,397 Rights Units which were not validly accepted will be allotted to satisfy excess applications. In such allotment, preference will be given to the rounding of odd lots (if any) followed by allotment to Unitholders who are neither Directors nor Substantial Unitholders who have control or influence over LMIR Trust or the Manager in connection with the day-to-day affairs of LMIR Trust or the terms of the Rights Issue, or have representation (direct or through a nominee) on the board of Directors.

To summarize, the sponsor had undertaken to subscribe for 95.18% of the entire rights issue (including excess units). But because the issue is oversubscribed at 121.35% of the total number of Rights Units available, allotment of the excess units had all been given to other unitholders instead of the sponsor and related parties. Which explains why they still retain their unit ownership percentage by just taking up their allocated rights units, and no excess units allocated.