CAPITALAND has offered to buy up all shares of CapitaMalls Asia (CMA), a listed mall owner and operator, that it does not own.
The developer said on Monday that its offer of $2.22 per share was being made "with a view to delist CMA".
The move was also in line with its aim to strengthen its capabilities in developing integrated developments, it said in a regulatory filing with the Singapore Exchange.
"The individual components of an integrated development complement one another to increase the overall attractiveness of the project.
"For example, the pre-sales of residential units help fund development costs and improve project cash flows whilst mall connectivity enhances the appeal to commercial tenants and services residence customers," it said.
The firm added that it expects the proposed delisting to help "improve sourcing of opportunities, streamlining of operations and greater resource accessibility".
CapitaLand said its offer is 27 per cent above the one-month volume-weighted average price of $1.748 per CMA share for the month ended April 11.
It also represents a 20.7 per cent premium on the consolidate net asset value per share of $1.84 as at Dec 31.
If successful, the privatisation is expected to raise CapitaLand's earnings per share for the 12 months to Dec 31, 2013 by about 21.5 per cent.