ART is unlikely to raise its price for AHT. “The total consideration cannot be revised, but the ratio between cash and units may be reviewed, subject to CDP’s [Central Depository] approval,” a CapitaLand spokeswoman says.
(Aug 5): Ascott Residence Trust announced on July 11 that Gordon Tang (who has a 6.1% stake in Ascendas Hospitality Trust) and AHDF (which has a 4.1% stake in AHT) have given their irrevocable undertaking to accept ART’s offer to buy AHT. CapitaLand, which owns 28.04% of AHT and around 44% of ART, cannot vote.
On July 3, ART and AHT announced a merger by a scheme of arrangement, subject to approvals from the court, regulator, stapled security holders and unitholders. The “scheme consideration” is based on a gross exchange ratio of 0.836 times, which is derived from the net asset value per stapled security of AHT of $1.02 as at March 31 divided by the NAV per unit of ART of $1.22 as at Dec 31. ART’s NAV as at June 30 was $1.27.
