Asian Pay Television Trust is planning to raise at least US$1.1 billion in high yield securities to fund the purchase of the third largest cable television operator in Taiwan. The trust is backed by funds related to the Macquarie Group Ltd of Australia and is hedging on the current Asian market demand for securities.
The deal is one of the first of many listings to come on business trusts and real estate investment trusts that would be done in the Asia Pacific region in the coming weeks,
The trust has offered 942.63 million units at a maximum per unit price of US$1.00. The investors in the trust include Eastspring Investments, Och-Ziff Capital Management Group LLC, Quantum Partners of George Soros and Neuberger Berman have confirmed the purchase of 451.07 million units according to a prospectus filed with regulatory authorities.
APTT Is raising Sing$1.38 billion or US$1.12 billion and is projecting a profit of 7.3% for the year ending December 2013 while the prospectus is projecting a yield of 8.25% for 2014.
Nearly 80% of the proceeds of the IPO would be used to repurchase shares held by the TBC Group and other firms.
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