SINGAPORE (April 8): CapitaLand has made a convincing case for why its proposed acquisition of the Ascendas-Singbridge group from Temasek Holdings is in its long-term interest. But it hasn’t demonstrated that its minority investors are being treated fairly in the transaction. Temasek quite obviously benefits at their expense.
CapitaLand has proposed to acquire Ascendas-Singbridge for almost $6.036 billion, to be satisfied by an equal proportion of cash and new shares priced at $3.50 each. The price tag for Ascendas-Singbridge was reached by valuing its stakes in its real estate investment trusts (REITs) at market prices, coming up with an agreed fair value for its funds management business, and considering the net asset value of its remaining businesses.
