UPDATE 1-Singapore Starhill rights issue to raise $232 mln
* Holders offered 1 share for every share held at S$0.35 each
* Malaysia's YTL to take up to 75 pct of rights issue (Adds detail, background)
SINGAPORE, June 22 (Reuters) - Singapore's Starhill Global Real Estate Investment Trust (STHL.SI) on Monday proposed a rights issue to raise S$337.3 million ($231.7 million) to reduce debt and get new funds for possible acquisitions.
The property trust, which is controlled by Malaysia's YTL Corp (YTLS.KL), will offer shareholders one new unit for every existing share held at S$0.35 per rights unit -- a discount of about 45 percent to the last closing price of S$0.64.
YTL, whose units own about 26.6 percent of Starhill, will take up its entire allotment of rights shares and will subscribe for up to 75 percent of the rights unit, the property trust said in a stock market filing.
DBS (DBSM.SI) is the sole financial adviser to the deal and the rights issue will be fully underwritten by DBS, Merrill Lynch and Credit Suisse.
Starhill's assets include stakes in Wisma Atria and Ngee Ann City, two large malls on Singapore's Orchard Road shopping belt. (Reporting by Kevin Lim, Editing by Ian Geoghegan)
