Quarz's campaign may help rather than hinder the proposed merger of MCT and MNACT
Its insistence that MNACT is being undervalued might - perversely - mollify disgruntled MCT unitholders inclined to vote against the merger
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THE proposed merger of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) made headlines again this past week as Quarz Capital Management urged unitholders of MNACT to demand better terms or vote against the deal.
Quarz grumbled in a letter to MNACT's manager dated Feb 9 that the merger values MNACT at discount to its net asset value (NAV), and that the transaction will destroy value for unitholders.
This is an interesting twist. When the proposed merger of the two Mapletree real estate investment trusts (Reits) was announced on Dec 31, the consensus in the market seemed to be that the terms of the deal favoured unitholders of MNACT over those of MCT.
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