Ascott Business Trust established, following proposed combination of Ascott Residence Trust and Ascendas Hospitality Trust

ASCOTT Reit Manager announced the establishment of Ascott Business Trust (Ascott BT), in a filing to the Singapore Exchange late on Monday.

This follows an earlier announcement in July on the proposed combination of Ascott Residence Trust and Ascendas Hospitality Trust (A-HTRUST) by way of a trust scheme of arrangement for an aggregate consideration of S$1.0868 for each A-HTRUST stapled unit, comprising S$0.0543 in cash and 0.7942 Ascott Reit-BT stapled units.

The Singapore Exchange on Monday has given its approval for the listing and quotation of 2.18 billion new Ascott Reit-BT stapled units, which will be issued to existing Ascott Reit unitholders; up to 906 million new Ascott Reit-BT stapled units, which will be issued as part consideration for the combination; and new Ascott Reit-BT stapled units which may be issued to the Ascott Reit manager and the Ascott BT trustee-manager from time to time following the general mandate for issuance of new Ascott Reit-BT stapled units, in full or part payment of fees payable to the Ascott Reit-BT managers.