What happens during a REITS merger? - Seedly



Asked by Anonymous

Asked on 11 Apr 2019

What happens during a REITS merger?

Is it mostly legal settlements? Land lease and Building Entitlements swapping ownerships? How exactly will their total assets change + Div Structure?


Answers (1)

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Dexter Tiah
Dexter Tiah, Founder at Whatcard.sg
Level 3. Wonderkid
Answered on 20 Jun 2019

If you hold the reit that is being acquired (i.e. viva industrial trust) , you will receive either cash or stocks of fhe acquiring reit (i.e. esr reit) in exchange for your reit. This is usually at a small premium to the recent stock price. All the assets of the acquired reit will then be reported under the acquiring reit in future financial reporting