SINGAPORE (Nov 4): Maybank Kim Eng is keeping its “hold” call but has trimmed its target price on Cache Logistics Trust following its recent placement of new units to raise $100 million. Following the placement, Cache’s units in issue will rise by 14%.

Yet, from the proceeds, only $37 million will be allocated for potential acquisitions. The bigger chunk, of $60 million, is used to pare down debt, lowering gearing from 39.4% to 35.5%.

“As the placement is not connected with any specific acquisition and the money will be largely used for debt repayment, it immediately dilutes distribution per unit (DPU),” states Maybank Kim Eng in a Nov 4 note.

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