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CapitaMalls shares surge on buyout offer, index near 7-month top

Published on Apr 15, 2014 1:31 PM

SINGAPORE (Reuters) - Shares of CapitaMalls Asia surged as much as 22 per cent to its highest in more than a year on Tuesday after CapitaLand offered to buy out minority shareholders in the shopping mall operator.

CapitaMalls shares hit as high as $2.21, just short of the offer of $2.22 per share from CapitaLand - Southeast Asia's biggest property developer. The gain pushed up the benchmark Straits Times Index to its highest in nearly 7 months.

Nearly 115 million CapitaMalls shares were traded, more than 11 times its average full-day volume over the past 30 days. CapitaLand shares jumped more than 5 per cent.

Maybank Kim Eng maintained its "Buy" rating on the CapitaMalls shares, with a target price of $3.85.

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