Star Asia Investment to merge with Sakura Sogo REIT in a $540m deal.

Star Asia Investment, an independent investment management group, agreed to merge with Sakura Sogo REIT, a diversified property real estate investment trust, in a $543m deal. 1.78 Star Asia units will be allocated for each 1 SSR unit, implying a merger ratio of SAR:SSR = 1:0.89. The merger will increase DPU that contributes to maximizing unitholders’ value of both SAR and SSR. It will better position companies in the market with larger market capitalization as well as improved stability with expanded financial base. The deal will also allow the continued implementation of diverse investment strategies (active management) that will improve unitholder value with an expansion of asset size.