Mapletree REITS offer cash-only consideration option to $2.2b proposed merger

A backing of up to $2.2b will be implemented by the group. 

Unitholders of Mapletree North Asia Commercial Trust Management Ltd. (MNACT) will be provided with an alternative option to receive in cash the scheme consideration of the MNACT and Mapletree Commercial Trust (MCT).

This is in addition to the existing options of the scrip-only consideration and cash-and-scrip Consideration.

The value of scheme consideration remains unchanged at $1.1949.

As part of a joint announcement by MCT and MNACT, the inclusion of the program allows for greater flexibility to choose the form of scheme consideration.

The decision to include the consideration came after a request from MNACT, following current market conditions and feedback from unitholders. According to them, this would also allow for the safeguarding of the interests of MCT unitholders. 

“The addition of the alternative Cash-Only Consideration to MNACT Unitholders gives them complete flexibility in electing the form of Scheme Consideration. This does not change the Merger’s previous terms and we continue to believe in its strategic and financial rationale,” said Sharon Lim, CEO, MCT Manager. 

Through this consideration, $2.2b will be funded via a Preferential Offering to MCT unitholders, which will also be backed by Mapletree Investments. 

Mapletree Investments Pte. Ltd. (MIPL) will subscribe for the Preferential Offering for up to $2.2b at the issue price of $2.0038 per MCT unit. 

The MIPL Undertaking and Sponsor Lock-Up Undertaking are in addition to MIPL’s support of the MCT Manager’s waiver of its acquisition fees.