CMT, CCT sweeten merger deal for unitholders

Long-stop date extended to Nov 30; both Reits will hold unitholder meetings on Sept 29 to seek approval for the deal

Published Fri, Sep 4, 2020 · 09:50 PM

Singapore

CAPITALAND Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) on Friday announced deal sweeteners for their proposed merger, such as higher accretion to their respective distribution per unit (DPU), and the decision of CMT's manager to completely waive the acquisition fee of S$111.2 million.

Perhaps the market was holding out for a better gross exchange ratio (GER) for CCT which did not materialise. At the closing bell, CMT units were down 3 Singapore cents or 1.5 per cent to S$1.93, while CCT units lost 3 cents or 1.8 per cent to S$1.65.

At a briefing on Friday, CEOs of both managers said that the pro forma DPU for the last 12 months ended June 30, 2020 for CMT would have increased 4.1 per cent, while that for CCT would see an acc…