Lendlease successfully raise much needed capital
Lendlease (LLC) +8.8%: resumed trading today after successfully getting a $950m capital raise away. At $9.80 a share, those lucky enough to land some are already 18.5% ahead with new shares offered at a 9% discount to the last price. A share purchase plan is now underway in an effort to take the total raised to $1.15b. The raise came to sure up the developer’s balance sheet with COVID-19 causing delays to projects in London, Singapore, Kuala Lumpur, Milan and across the US. The company said that their FUM business had managed to secure a $1.6b mandate which will help support earnings there despite revaluations elsewhere impacting the result.
The full year result will also be hit by delays in the development segment and a fall in productivity in construction causing Lendlease to walk from guidance. The sale of the engineering business is progressing, though it may not be in a position to complete the transaction in this half. Lendlease is cheap and was being weighed down by the need to raise capital with plenty of debt on the balance sheet. Now that this has been resolved, LLC could see a floor in place and represents decent buying.
Lendlease (LLC) Chart
