CapitaLand buys Ascendas-Singbridge to make Asia's largest prop group

Singaporean real estate giant, CapitaLand Limited, recently announced that it has acquired a subsidiary of Temasek, Ascendas-Singbridge Pte Ltd in a deal to develop the largest diversified real estate group in Asia. With this transaction, CapitaLand also purchased all of the shares in Temasek and Ascendas-Singbridge.

The proposed transaction is valued at S$11 billion ($8 billion), according to a company statement.

Under the terms of the agreement, Temasek will receive S$6 billion ($4 billion), which will be satisfied 50% in cash ($2 billion) and 50% in new CapitaLand shares ($2 billion). Post transaction, Temasek’s ownership of CapitaLand will increase from approximately 40.8% to about 51.0%.

The shares will be priced at S$3.50 ($2.58) per share, representing a premium of 11.3% or approximately S$0.36 ($0.27), over CapitaLand’s one-month volume weighted average price of S$3.1447 ($2.32). The consideration takes into account the adjusted net asset value of Ascendas Singbridge, which includes the value of its fund management platform and the trading value of its three sponsored listed trusts.

The deal is subject to approval of CapitaLand’s independent shareholders at an Extraordinary General Meeting, expected to be convened by 1H 2019.

Ascendas-Singbridge manages three listed trusts, Ascendas Reit, Singapore’s first industrial and business space trust; Ascendas India Trust, the first Indian property trust in Asia; and Ascendas Hospitality Trust, which has a portfolio of 14 hotels in Australia, Korea, Japan and Singapore.

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