CAPITALAND LIMITED (SGX:C31)
CapitaLand - Proposed Acquisition Of Ascendas-Singbridge Pte Ltd
- CAPITALAND LIMITED (SGX:C31) announced this morning that it has entered into a transaction with Temasek to acquire from its subsidiary, Ascendas-Singbridge (ASB), all the shares in two wholly owned intermediary subsidiaries of Ascendas-Singbridge.
- The proposed transaction is valued at an enterprise value of S$10.9b, of which S$6.0b is the equity value, while the remaining S$4.9b is made up of net debt and minority interest.
- This acquisition is subject to approval by CapitaLand’s shareholders at an EGM.
- If completed, the combined total AUM of the group will exceed S$116b.
- Under the terms of the agreement, Temasek will effectively receive S$6.0b, which will be satisfied 50% in cash (S$3.0b) and 50% in new CapitaLand shares (S$3.0b) which will be priced at S$3.50 per share.
- This proposed transaction will significantly increase CapitaLand’s scale and allow it to have a strong presence in the industrial and logistics markets. CapitaLand expects to reap synergies given the complementary nature of ASB’s business to CapitaLand’s.
- We currently have a BUY rating on CapitaLand with a fair value estimate of S$3.96, which is based on a 20% RNAV discount applied.
- More details will be provided after the analyst briefing later this morning.
Wong Teck Ching Andy CFA
OCBC Investment Research
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https://www.iocbc.com/
2019-01-14
SGX Stock
Analyst Report
3.960
SAME
3.960
