In view of the proposed merger of CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT). Will it be better to buy CCT compared CMT as CMT ($0.259 in cash and 0.72 new CMT units)? - Seedly
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James C

Asked on 27 Apr 2020

In view of the proposed merger of CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT). Will it be better to buy CCT compared CMT as CMT ($0.259 in cash and 0.72 new CMT units)?

Someone who is interested in holding onto CICT

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Sudhan
Sudhan
Level 6. Master
Updated on 29 Apr 2020

Hi James C, I'm unable to give specific financial advice, but you can check out check out our coverage here and Fifth Person's coverage here on the merger to make an informed decision. All the best! ​​​

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Jovan Lai
Jovan Lai
Level 4. Prodigy
Answered 2d ago

Hi there,

I think most assume its a good thing for shareholders of both side but it may not be as simple as that.

With the merger, the combined new company has to take on the debt and liabilites of both side. Of course it benefits from being able to utilise assets from both sides.

Another point is that 1 is a retail REIT and the other is a commercial REIT, it changes the fundamentals of the company should they merge.

Ultimately, study both companies and have a good understanding of both sectors instead of assuming they are the same because they are both REITs.

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👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post