The proposed merger between CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) to create a diversified commercial REIT to be named CapitaLand Integrated Commercial Trust (CICT), has received a resounding yes from unitholders on September 29.
See: CMT, CCT propose merger to create largest REIT in Singapore, third largest in Asia Pacific
The result came after over 3,000 unitholders voted by proxy at CMT’s extraordinary general meeting (EGM) and CCT’s EGM and Trust Scheme Meeting held on the same day.
Some 98.89% of the total votes were in favour of the proposed merger at CMT’s EGM, while about 98.88% of voters said “yes” to the issuance of new CMT units as part of the scheme consideration for the merger.
See also: CMT to list 2.78 bil new units following SGX approval; CCT to delist
Majority shareholders Pyramex Investments Pte Ltd, Albert Complex Pte Ltd, Premier Healthcare Services International Pte Ltd, CapitaLand Mall Trust Management Limited and their associates abstained from voting on these resolutions.
Jason Leow, the president of CapitaLand Singapore & International of CapitaLand Group, and Jonathan Yap, the president of CapitaLand Financial of CapitaLand Group and a director of CapitaLand Commercial Trust Management Limited, also abstained from voting on these resolutions.
At CCT’s Trust Scheme Meeting, about 90.31% of voters representing about 98.23% in value of the total number of CCT units, were in favour of the merger.
The manager of CCT and its concert parties, as well as common substantial unitholders of both CMT and CCT abstained from voting on the trust scheme resolution.
The resolution on the CMT Trust Deed Amendments at CMT’s EGM and the resolution on the CCT Trust Deed Amendments at CCT’s EGM were approved with approximately 99.75% and approximately 96.04% of the total number of votes respectively.
“To receive a strong mandate amidst the uncertainties of COVID-19 to deliver the transformative merger is an honour and a responsibility we do not take lightly. Underpinned by leadership and resilience, the Merged Entity will be in a stronger position to seize the opportunities across retail, office and integrated developments in our focus market of Singapore,” says Tony Tan, CEO of the manager of CMT.
“We remain firmly committed to delivering sustainable distributions and long-term returns for our unitholders, something we have been doing in CMT and will continue to do in CICT. We thank CMT Unitholders for your trust and support as we embark on this new journey as CICT,” Tan adds.
“The Merger is an important milestone in our journey through evolving market trends and a changing real estate landscape to deliver sustainable returns to CCT Unitholders,” says Kevin Chee, CEO of CCT’s manager.
“The Merger with CapitaLand Mall Trust to form CapitaLand Integrated Commercial Trust will put us at the forefront to seize opportunities, create value and weather uncertainties and challenges. We remain resolute in our commitment to CCT Unitholders to deliver long-term sustainable returns through the new Merged Entity,” Chee adds.
CICT is expected to be one of the largest REITs in Asia Pacific, and the largest REIT in Singapore by market capitalisation (at $12.7 billion) and total portfolio property value (at $22.4 billion).
The consideration for each CCT unit under the trust scheme comprises 0.72 new CMT units and 25.9 cents in cash.
The merger is expected to take place on October 21. CCT’s last day of trading is expected to be on October 16.
As at 4.07pm, units in CMT and CCT last traded at $1.99 and $1.69 on September 28. Trading halts were requested for both REITs before market hours on September 29.
