- What Lighthouse Capital is offering to swap shares in the company for shares in Hammerson
- Why To “to take advantage of strategic investment opportunities arising from the current financial market volatility”
- What next As part of a broader fund raising strategy Lighthouse is looking to raise around £89m, although this could be expanded
Lighthouse Capital, a new investor in Hammerson, is offering shareholders the opportunity to swap shares in the company for its own shares.
Owners of the shopping centre company have been offered 2.1 shares in the opportunistic Johannesburg-listed firm, in exchange for one of their shares. Hammerson also holds a dual-listing on the Johannesburg Stock Exchange.
Lighthouse has been buying into the company since the onset of the COVID-19 pandemic that has seen rental income in shopping centres decimated due to the lockdown and share prices plunge. On 15 May it announced that it had built a 9.13% stake.
The company said that it is aiming “to take advantage of strategic investment opportunities arising from the current financial market volatility”.
Lighthouse is issuing new shares that would be swapped for the Hammerson shares, with an initial intention of raising around £89m, although this could be increased, subject to demand. Lighthouse is also offering a similar deal to South African real estate firm NEPI Rockcastle, where it is also trying to further build its stake.
A relative recovery
Since the offer by Lighthouse was made on Monday Hammerson shares have risen considerably, up around 28% since last Friday and currently standing at around 62p. However, shareholders have still lost around 80% of their value since the start of the year.
Following the collapse of its £400m retail parks sale to Orion Capital Managers earlier this month, Hammerson has been under further pressure and has been weighing the sale of assets.
Java Capital is acting as bookrunner for Lighthouse.
