The manager of CapitaLand Commercial Trust (CCT) announced on Oct 1 that it has filed an application to order for sanction of the trust scheme.
The trust scheme sanction application is fixed for hearing at 4pm on Oct 12.
The trust scheme will become effective upon written notification to the MAS of the grant of the Trust Scheme Court Order, which shall be effected by or on behalf of the manager of CapitaLand Mall Trust (CMT).
On the same day, CMT says ratings agency Moody’s Investors Service has downgraded the issuer and senior unsecured ratings of CMT to A3 from A2.
Moody’s has also downgraded CMT’s wholly-owned subsidiary, CMT MTN’s senior unsecured ratings to A3 from A2.
The backed senior unsecured multicurrency medium-term note programme ratings of the notes issued by CMT MTN, as well as the senior unsecured rating on the retail bond programme issued by CMT were downgraded from (P)A2 to (P)A3.
The outlook on the above ratings has been changed from rating under review to negative.
On Sept 29, majority of CCT’s unitholders voted in favour of the merger at CCT’s Trust Scheme Meeting.
The manager of CCT and its concert parties, as well as common substantial unitholders of CMT and CCT abstained from voting on the trust resolution.
CCT will be delisted from the official list of the SGX-ST once the trust scheme becomes effective.
CMT and CCT on Jan 22, announced their proposal to merge into a diversified commercial real estate investment trust (REIT) to be named CapitaLand Integrated Commercial Trust (CICT).
The proposed merger is planned to be carried out through a trust scheme of arrangement.
Units in CMT and CCT closed 2 cents higher or 1.0% up at $1.95, and 3 cents higher or 1.8% up, at $1.67, on Oct 1.
