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Mapletree North Asia Commercial Trust - OCBC Investment 2022-03-21: Revision Of Trust Scheme A Boost To MNACT Unitholders

MAPLETREE NORTH ASIA COMM TR (SGX:RW0U) | SGinvestors.io MAPLETREE NORTH ASIA COMM TR (SGX:RW0U)

Mapletree North Asia Commercial Trust - Revision Of Trust Scheme A Boost To MNACT Unitholders




Revision of Trust Scheme of Arrangement with addition of all-cash consideration at S$1.1949 per MNACT unit



More flexibility for MNACT unitholders; longer-term strategic benefits of enlarged entity

  • The addition of the third option (full cash) provides Mapletree North Asia Commercial Trust unitholders with greater flexibility in choosing to either stay invested in the merged entity, or fully realise their investment.
  • To fund the potential additional cash outlay, Mapletree Commercial Trust will be launching a preferential offering of S$2.0039 per unit to raise up to S$2.2b, and its sponsor Mapletree Investments Private Limited (MIPL) has undertaken to subscribe for the maximum preferential offering.
  • MIPL’s resultant stake in the enlarged entity Mapletree Pan Asia Commercial Trust (MPACT) could range from 34.75% to 57.09%, highlighting strong alignment of interest with minority unitholders. Putting all these together, the pro forma financial effects remain unchanged compared to the original terms of the Trust Scheme, and we continue to see longer-term strategic benefits on an enlarged entity, as previously highlighted.

Option three (all-cash) most viable for conservative unitholders; sell in open market if share price > S$1.19






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2022-03-21
SGX Stock Analyst Report HOLD DOWNGRADE BUY 1.060 SAME 1.060



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