CapitaLand Limited announced today, January 14, that it will be acquiring from Temasek's subsidiary Ascendas-Singbridge (ASB) all the shares in the two wholly owned intermediary subsidiaries of ASB.
The deal will "create the largest diversified real estate group in Asia", CapitaLand said in a press statement.
The proposed transaction is valued at SGD11 billion and is subject to approval by CapitaLand Group's independent shareholders at a meeting expected to be held in the first half of 2019.
Post transaction, the combined total assets under management (AUM) of the Group will exceed SGD116 billion, with its geographical presence spanning more than 180 cities across 32 countries.
Under the terms of the agreement, Temasek will effectively receive SGD6 billion, which will be satisfied 50 percemt in cash and 50 percent in new CapitaLand shares. Temasek’s ownership of CapitaLand will increase from approximately 40.8 percent to about 51 percent upon the close of the transaction.
ASB is a provider of business space solutions headquartered in Singapore. The company has interests in, and also manages three listed trusts, namely Ascendas Reit, Singapore’s first industrial and business space trust; Ascendas India Trust, the first Indian property trust in Asia; and Ascendas Hospitality Trust, which comprises a portfolio of 14 hotels in Australia, Korea, Japan and Singapore.