CapitaLand, CMA soar on delisting offer for latter

SHARES of CapitaLand and its 65.3-per cent subsidiary CapitaMalls Asia (CMA) surged yesterday on news of the parent's $3.06-billion delisting offer for CMA.

While the move is good news for CapitaLand's shareholders since it is earnings-accretive and increases the return on equity, it is unclear if shareholders of CMA will accept the offer, which is at a narrow premium to CMA's IPO price, analysts say.

Following the lifting of their trading halts yesterday, CMA soared as high as $2.21 before closing 21 per cent up at a 52-week high of $2.19, while CapitaLand shares rose 6.5 per cent to close at $3.11 after hitting $3.12.