Brokers' take

Ascott Residence Trust | Hold (maintained) July 4 close: S$1.31 Target price: S$1.25 Maybank Kim Eng, July 4

Ascott Residence Trust (ART) has swiftly announced a merger with Ascendas Hospitality Trust (AHT) in a widely anticipated exercise, following the completion of its sponsor's acquisition of Ascendas-Singbridge last week.

The S$1.2 billion merger with AHT will be done via a trust scheme at a gross exchange ratio of 0.836 times, with 5 per cent of the consideration funded by cash and the remaining 95 per cent in ART units.