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Anonymous
Hi new to investing, what would be the difference between buying CapitaCom trust and CapitaMall trust now, since they will be merging? Both stocks still seem available to purchase.
If i were to buy capitacom trust now what does it mean for me?
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Elijah Lee
02 Oct 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi anon,
I'd say you can buy CMT instead of CCT if you are looking at holding long term. CCT unit holders will be given CMT shares plus cash, which may be an issue as you'll end up with odd lots. So it's a lot easier to just buy CMT in my view.
If you really buy CCT, you'll probably end up with some uneven (lot size wise) number of CMT shares and spare cash. So unless you don't mind this, if not, CMT is a better choice long term.
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Capitaland Commercial Trust and Capitaland Mall Trust will be merging soon to form Capitaland Integrated Commercial Trust. All unitholders of Capitaland Com Trust would be issued 0.72 new CMT units and $0.259 in cash per unit.
As such I believe it would be better if you were to buy Capitaland Mall Trust else you may risk having odd lots.āāā