Asked on 21 Apr 2020
What are the pros and cons of this merger and do you think this is a viable investment?
Hi Adnan Hussain, if you have a long-term view on CapitaLand Mall Trust and believe the world will bounce back from Covid-19, the REIT looks interesting. We have an analysis on the REIT here.
As always, please do your own due diligence before investing in any company, including CapitaLand Mall Trust.
All the best!
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.