Hot stock: Manulife US Reit up as much as 3.8% on report of manager being acquired
Vivienne Tay
SHARES of Manulife US Reit hit a near-two-week high on Wednesday (Mar 15), amid reports that its manager is exploring a sale to Korean asset manager Mirae Asset Global Investments.
In its response to media reports, the real estate investment trust’s (Reit) manager Manulife US Real Estate Management confirmed that it is currently in discussions with Mirae Asset regarding a potential transaction which may involve the acquisition of its own shares, and the subscription of new shares in Manulife US Reit.
Mirae Asset is said to be buying the Reit’s manager for some 200 billion won (S$206.4 million), Maeil Business News Korea reported.
Following the report, Manulife US Reit’s counter reached a high of US$0.275 as at 10.16 am, jumping 3.8 per cent or US$0.01, and sustained at this level for a good part of the day, before ending at US$0.27, with 8.2 million units changing hands. There were no married deals recorded, ShareInvestor data showed.
Manulife US Reit’s manager emphasised that there was no certainty or assurance that any definitive agreements or transactions would materialise from present discussions.
Mirae Asset beat out four to five other candidates to be picked as the preferred bidder, Maeil said, citing multiple sources.
Founded in 1997, Mirae Assets is the asset management arm of Mirae Asset Financial Group. It currently invests over US$198 billion on behalf of its clients as at Dec 31, 2022.
It has a presence in 13 markets: China, South Korea, Japan, Australia, Vietnam, India, Hong Kong, Canada, the US, the UK, United Arab Emirates, Brazil and Colombia. The potential deal, if successful, will allow the asset manager to expand its overseas presence.
