Hot stock: CapitaLand shares rise 1.8% on updates to restructuring plans

SHARES of CapitaLand climbed as much as 1.8 per cent or S$0.07 to S$3.88 as at 2.55pm on Monday, amid positive sentiment over its restructuring plan.

The counter was one of the most heavily traded on the Singapore Exchange, with some 14 million shares changing hands.

In a briefing on Monday, CapitaLand's management said CapitaLand Investment (CLI) - a new, listed unit for its fund management and lodging management businesses as well as its real estate investments - is aiming to achieve S$100 billion in funds under management by 2024, up from S$78 billion in 2020.

CLI will also target to grow its lodging business to 160,000 units under management by 2023, from 123,000 units in 2020.

Investor confidence was buoyed after the independent financial adviser in the deal said in a letter on July 17 that the restructuring plan is "fair and reasonable".

CapitaLand in March announced it was planning to divide its business into the new CLI and a privately-held development arm.

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For every one CapitaLand share held, shareholders will receive one CLI share, S$0.951 in cash as well as 0.155 unit in CapitaLand Integrated Commercial Trust. The implied value per share for CapitaLand shareholders is S$4.102.

CapitaLand has called for an extraordinary general meeting (EGM) on Aug 10 for shareholders to vote on the planned transaction. The independent directors have recommended that shareholders approve both a capital reduction exercise and a scheme of arrangement at the upcoming EGM.

Meanwhile, the listing of CLI is expected to take place on or around Sept 17. With assets under management of about S$115 billion, CLI is expected to be the largest real estate investment manager (REIM) in Asia, and the third-largest listed REIM company globally.

READ MORE:

• CapitaLand Investment to bank on multiple engines for growth
• CapitaLand's restructuring plan is 'fair and reasonable': IFA
• CapitaLand's morphing into CLIM could provide a template for others
• CapitaLand's pursuit of heft and diversity is not working; it's time to separate growth from value
• CapitaLand to divest partial stakes in China projects to Ping An for 46.7b yuan; deal to yield net proceeds of over S$2b