PST – BT

PST preferential offering gets strong support

It expects to issue 252.75m new units at 36.5 US cents each

A PLANNED preferential offering by Pacific Shipping Trust (PST) received 98.7 per cent approval at an extraordinary general meeting of unitholders yesterday, with some retail holders asking about extra allocations.

Although PST cannot meet such requests, ‘the overwhelming support shown by unitholders is a strong endorsement of our prudent capital and risk management strategies and our plans for future growth’, said Alvin Cheng, CEO of trustee-manager PST Management. ‘This is also testimony to the faith and confidence that institutional and retail unitholders have in our long-term vision for PST.’

PST expects to issue about 252,750,000 new units at 36.5 US cents apiece on the basis of three new units for every four existing units held. The books closure date for the offer is Sept 11, 5pm.

‘We look forward to continuing support from each and every unitholder as we endeavour to deliver stable and growing returns,’ said Mr Cheng.

Pointing out that PST’s book value is 44 US cents per unit, he said the new units are being offered at a 17 per cent discount.

He also said that the increased number of units will increase liquidity and possibly boost trading in the trust’s units. ‘There is potential upside and good value that is not being recognised by the market at the current unit price,’ he said.

The exercise will raise US$92.3 million to finance and refinance part of the purchase of four new vessels. PST sponsor Pacific International Lines now has a 34.7 per cent direct stake in the trust.