CapitaLand to acquire Ascendas-Singbridge for $8.1bn.

CapitaLand Limited has entered into a transaction with Temasek to acquire from its subsidiary, Ascendas-Singbridge Pte Ltd, all the shares in the two wholly owned intermediary subsidiaries of ASB, the effect of which will be to create the largest diversified real estate group in Asia. The proposed transaction is valued at SGD11bn ($8.1bn) and is subject to approval by CapitaLand’s independent shareholders. Post transaction, the combined total assets under management of the Group will exceed SGD116bn ($85.7bn). The Group’s expanded asset classes will include logistics/business parks, industrial, lodging, commercial, retail and residential. Its geographical presence will span more than 180 cities across 32 countries. In addition, the Group will leapfrog CapitaLand’s Year 2020 AUM target of SGD100bn ($73.9bn), putting it amongst the top 10 real estate investment managers globally. Under the terms of the agreement, Temasek, one of the shareholders, will effectively receive SGD6bn ($4.4bn), which will be satisfied 50% in cash and 50% in new CapitaLand shares. The shares will be priced at SGD3.5 ($2.59) per share, representing a premium of 11.3% over CapitaLand’s one-month volume weighted average price of SGD3.1447 ($2.32). Temasek’s ownership of CapitaLand will increase from approximately 40.8% to about 51% upon the close of the Transaction. Commenting on the Transaction, Mr Ng Kee Choe, Chairman of the Board of CapitaLand Limited, said: “CapitaLand is very enthusiastic about this transformational transaction and the prospect of growing the combined platforms into a leading global real estate group. Our complementary strengths position us strongly for growth amidst the changing real estate environment in Singapore and internationally. With enlarged scale, expanded capabilities and resources, and a global footprint, we look forward to delivering high quality growth sustainably."