MCT, MNACT merger to make way for larger acquisitions, projects: analyst

The merger was effective on 21 July 2022.

The Mapletree Pan Asia Commercial Trust (MPACT) will produce better financial flexibility and greater debt headroom to ensure larger acquisitions and development projects, said UOB Kay Hian.

The debt headroom of MPACT, the merger between MapleTree Commercial Trust and Mapletree North Asia Commercial Trust, will rise from $2,911m to $3,785m based on the maximum permitted aggregate leverage of 50%.

Moreover, the headroom for development projects will also increase from $878m to $1,710m.

Related story: Net asset value for MCT units to increase to $1.81 after merger with MNACT

UOB Kay Hian also projects that the sponsor investment stake in MPACT will go up from 32.7% to a maximum of 55.7%, “assuming none of the minority unitholders took up the preferential offering.”

The merger will become effective on 21 Jul 2022, which will make use of a 4R post merger strategy.