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Aug 26 hearing date set for sanction of OUE C-Reit, H-Trust merger
AN Aug 26 court hearing has been scheduled to sanction the proposed merger of OUE Commercial Real Estate Investment Trust (C-Reit) and OUE Hospitality Trust (H-Trust), following which the trust managers will provide an updated indicated timetable for the merger.
In an earlier indicative timeline, the court hearing had initially been expected to take place on Sept 5, with the expected last day of trading for H-Trust's stapled securities to be Sept 12.
Under the proposed scheme, OUE C-Reit will acquire OUE H-Trust by paying the latter's holders, for every H-Trust stapled security held, 4.075 Singapore cents in cash plus 1.3583 new OUE C-Reit units. Holders of both trusts had approved the merger, to take place via a trust scheme of arrangement, at separate meetings on Aug 14.
On Tuesday night, the managers of the trusts announced in separate regulatory filings that they have applied for an order for sanction of the trust scheme, with the application to be heard at 10am on Aug 26.
Subject to the grant of this court order and the satisfaction or waiver of scheme conditions in accordance with the agreement terms, the trust scheme will become effective upon the lodgment of the court order with the Monetary Authority of Singapore (MAS), or the notification of the granting of the court order to MAS.
On Tuesday, OUE H-Trust units closed down 0.5 Singapore cent or 0.69 per cent at S$0.72, while OUE C-Reit units closed unchanged at S$0.515.