CapitaLand has made an offer of S$3.06 billion for the full acquisition of its subsidiary CapitaMalls Asia, which it now owns 65 per cent of.
The offer stands at S$2.22 per share, in cash, and is at a 23 per cent premium over its closing price last Friday.
This acquisition will allow CapitaLand, which is almost 40 per cent owned by Temasek Holdings, to better consolidate its business strategies with CapitaMalls Asia in a movement called “One CapitaLand”.
The company said, “The ‘One CapitaLand’ strategy seeks to harness the key strengths of its various business units to create differentiated real estate projects and enhance overall project returns.”
Explaining, CapitaLand continued, “For example, the pre-sales of residential units help fund development costs and improve project cash flows whilst mall connectivity enhances the appeal to commercial tenants and serviced residence customers. Malls in integrated developments are likely to enjoy higher foot traffic and a captive catchment from integrated offices and serviced residences.”
The listed CapitaMalls Asia, will be taken private post-deal.
Explaining, CapitaLand continued, “For example, the pre-sales of residential units help fund development costs and improve project cash flows whilst mall connectivity enhances the appeal to commercial tenants and serviced residence customers. Malls in integrated developments are likely to enjoy higher foot traffic and a captive catchment from integrated offices and serviced residences.”
The listed CapitaMalls Asia, will be taken private post-deal.
CapitaMalls is one of South East Asia’s largest mall operators with more than 100 shopping malls, with a third of its revenues coming from Singapore, and more than 40 per cent from China.
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