ESR-REIT manager believes merger with Sabana 'beneficial'

Benefits will include a larger free float and larger asset base, it claimed.

ESR Funds Management, the manager of ESR-REIT, has reiterated that the ESR-Sabana REIT merger will be a win-win for unitholders of both firms, it said in a statement.

It said that the Scheme Consideration payable to Sabana REIT unitholders is based on a fixed gross exchange ratio of 0.940x. Therefore, the implied offer price is directly correlated to ESR-REIT’s unit price performance during the one-month period leading up and prior to the effective date, and may rise or decline accordingly.

Benefits of the merger will include a larger free float and higher expected trading liquidity, better portfolio diversification, larger asset base and stronger balance sheet flexibility, ESR Funds claimed amongst others.

Independent unitholders of ESR-REIT and Sabana REIT will get to decide on the merget, as they deem fit, and it is important that they vote at ESR-REIT’s extraordinary general meeting as well as Sabana REIT’s EGM and scheme meeting respectively, it concluded.