What are your opinions regarding the current trading price of Capitaland Mall Trust (C38U)? With a merger between CMT and CCT (Capitaland Commercial Trust) happening in the future, is it a good buy? - Seedly
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Adnan Hussain

Asked on 21 Apr 2020

What are your opinions regarding the current trading price of Capitaland Mall Trust (C38U)? With a merger between CMT and CCT (Capitaland Commercial Trust) happening in the future, is it a good buy?

What are the pros and cons of this merger and do you think this is a viable investment?

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    Sudhan

    Sudhan

    Level 7. Grand Master

    Answered on 21 Apr 2020

    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.

    Regarding the merger, you can check out our coverage here and Fifth Person's coverage here. Overall, I'm positive about the merger.

    As always, please do your own due diligence before investing in any company, including CapitaLand Mall Trust.

    All the best!

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    Adnan Hussain

    Adnan Hussain

    22 Apr 2020

    Hi Sudhan, Thank you for the info!
    Sudhan

    Sudhan

    22 Apr 2020

    You're welcome, Adnan Hussain!
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post

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