As per media report, a sum of $201 million is being sought by AMP NZ Office Trust (ANZO) through a rights issue. The trust would pay less to unit holders in order to adjust to the difficult economic environment.

It was confirmed by ANZO that the renounceable rights issue is being supported by its 19.9 percent shareholder Haumi Company Ltd. The issue provides the right to buy nine new units for every 20 held at 65c a unit.

It should be noted that the price is at a 21% discount to the 82c average in the past five trading days.

A good support is being predicted by ANZO from institutions apart from noting that it has net tangible assets worth $1.11 a unit.

First NZ Capital Securities Ltd. has underwrote the rights issue.

A pay out of 6.92c per unit in the year to June 30 is being predicted by ANZO, down 17.5 percent on last year. The increase in units from the rights issue and the requirement to take a conventional approach to decrease volatility of future distributions is reflected by the fall.

ANZO confirmed that it had a new $242.5m three-year bank facility and would use the rights issue proceeds to repay an old facility and enter into a second new $100m facility for a three-year term starting in June. The company is concentrating on 2 percent growth in distributions in the future.

(Via TopNews New Zealand. Contributed by Manish Verma)