Unitholders of both Mapletree Commercial Trust and Mapletree North Asia Commercial Trust have approved the proposed merger of the two REITs at their respective EGMs held earlier on May 23.
The two REITs will proceed to form Mapletree Pan Asia Commercial Trust, expected to be one of the ten largest REITs in Asia.
At MCT’s EGM, some 91.67% of the total number of votes were in favour of the merger. The other resolutions were passed as well.
Parent organisation Mapletree Investments and related entities have abstained voting on some of the resolutions as required.
“The enlarged scale and stronger financial muscles of MPACT will enable us to undertake capital recycling opportunities, take on value-enhancing asset enhancement and development initiatives, and pursue larger acquisitions in Asia’s key gateway markets,” says CEO of MCT’s manager Sharon Lim.
At MNACT’s EGM, some 99.03% of the total number of votes were in favour of the merger.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
“Backed by the strong support of our Sponsor, MPACT is well placed to reposition the enlarged portfolio and to ride on the recovery and long-term growth of Asia to deliver long-term sustainable value to all unitholders,” says Cindy Chow, CEO of MNACT’s manager.
Under terms of the deal, MNACT unitholders will by default receive an all-cash offer of $1.1949 for each unit they hold.
Alternatively, they can take an all-scrip offer of 0.5963 units at $2.0039 per MCT unit.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
Or, they can choose a mix of $0.1912 in cash and 0.5009 units.
Both MCT and MNACT units were halted for trading on May 23 before the EGMs.
MCT units last traded at $1.81, down 5.73% year to date; MNACT units last traded at $1.20, up 4.35% year toda.
