SIC raps A&G, DBS for whitewash bungle, but it was Mapletree sponsor that gave sweeter terms

FOR many investors, the most significant aspect of the merger of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) nearly two years ago was the intervention of their sponsor, Mapletree Investments, to appease disgruntled minority investors.

On Feb 15, however, the Securities Industry Council (SIC) revealed an intriguing backstory to the transaction when it publicly upbraided Allen & Gledhill (A&G) and DBS for breaching the Singapore Code on Take-overs and Mergers in their role as advisers to the manager of MCT.

The merger involved MCT acquiring MNACT in exchange for new units and cash, and then renaming itself Mapletree Pan Asia Commercial Trust (MPACT). Mapletree Investments had provided an undertaking to exchange its 38.1 per cent stake in MNACT entirely for new units in MCT.