Singapore REIT Mapletree Commercial Trust adds cash-only option to $3 billion merger

A Mapletree logo is displayed at its Singapore office
FILE PHOTO: A Mapletree logo is pictured at its Singapore office March 4, 2013. REUTERS/Edgar Su

March 21, 2022

(Reuters) – Shareholders of Mapletree North Asia Commercial Trust now have an option to receive cash consideration from a proposed S$4.2 billion (US$3.10 billion) merger with Mapletree Commercial Trust. the real estate investment funds in Singapore linked to Temasek announced on Monday.

Mapletree Commercial Trust (MCT) announced in December that it would buy Mapletree North Asia Commercial Trust (MNACT) to create the seventh-largest real estate investment trust (REIT) in Asia with an expected market value of approximately S$10.5 billion.

The two REITs said in a joint statement Monday that MNACT shareholders would now have the option to choose cash consideration in addition to the previous offering for MCT units or a combination of cash and MCT units.

The value of the merger remained unchanged at S$1.1949 per MNACT unit, they said. However, the inclusion of the cash option will result in an additional cash requirement of up to S$2.2 billion, funded by a preferential offering to MCT shareholders at an issue price of S$2.0039 per MCT unit.

Last month, Reuters reported that activist investor Quartz Capital Management opposed the terms of the proposed merger, saying MNACT was significantly undervalued.

Mapletree Investments Pte Ltd, the global real estate conglomerate owned by Singapore-based investor Temasek, is the single largest shareholder of both trusts with 32.6% in MCT and 38.1% in MNACT as of December 29.

($1 = 1.3553 Singapore Dollars)

(Reporting by Indranil Sarkar in Bengaluru; Editing by Subhranshu Sahu) Singapore REIT Mapletree Commercial Trust adds cash-only option to $3 billion merger


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