VGP drops 4% after rights offering of 5.5 mln shares at discounted price

VGP NV

16/11/2022 08:49

** Shares in VGP  VGP1.BR  drop 4% to 81.50 euros after the
real estate developer launched a rights offering for maximum of
5.5 mln new shares
    ** The Belgian group said on Tuesday it was launching a
public offering to existing shareholders and any holders of a
non-statutory preferential right at an issue price of 55.50
euros per share
    ** This equals to a discount of 34.6% to the last closing
price, KBC analysts say
    ** The net proceeds of up to 299 mln euros ($311 mln), will
be used primarily for the development of new projects on
development land in existing and new markets, VGP says
    ** "There are signals in the market that pricing for land
and projects has become much less competitive than the red-hot
situation over the previous 12 months," KBC notes
($1 = 0.9625 euros)
 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))