Singapore's CapitaLand offers $3.06b to take over CapitaMalls Asia

CapitaLand, Southeast Asia's biggest property developer, said it had launched an offer worth $3.06 billion to take complete ownership of its 65-percent subsidiary CapitaMalls Asia. -- FILE PHOTO: BLOOMBERG
CapitaLand, Southeast Asia's biggest property developer, said it had launched an offer worth $3.06 billion to take complete ownership of its 65-percent subsidiary CapitaMalls Asia. -- FILE PHOTO: BLOOMBERG

SINGAPORE (Reuters) - CapitaLand, Southeast Asia's biggest property developer, said it had launched an offer worth $3.06 billion to take complete ownership of its 65-percent subsidiary CapitaMalls Asia.

CapitaLand is offering $2.22 in cash, a 23 per cent premium to CapitaMalls' closing share price of $1.80 on Friday. Trading in both the shares was halted on Monday pending an announcement.

"Delisting CMA enables greater alignment between CapitaLand and CMA's business strategies by focusing resources on highest overall project returns," CapitaLand said in its statement to the Singapore Exchange on Monday.

Singapore sovereign investor Temasek Holdings owns 39 per cent of CapitaLand.

CapitaMalls, which manages 105 shopping malls, earned 43 per cent of its revenue from China last year, 32 per cent from Singapore, and most of the remaining from Japan and Malaysia.

Morgan Stanley and Credit Suisse are advising CapitaLand on the transaction.