Long-stop date for merger of CapitaLand Reits extended to Nov 30; EGMs on Sept 29

CapitaLand Mall Trust and CapitaLand Commercial Trust unveiled plans to merge in January 2020.
CapitaLand Mall Trust and CapitaLand Commercial Trust unveiled plans to merge in January 2020.ST PHOTO: KUA CHEE SIONG

SINGAPORE (THE BUSINESS TIMES) - The long-stop date for the proposed merger between CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) has been extended to Nov 30 from Sept 30, their managers announced on Friday (Sept 4).

Both real estate investment trusts (Reits) will hold their respective unitholder meetings on Sept 29 to seek approval for the proposed deal.

CMT will hold its extraordinary general meeting (EGM) at 10.30am, while CCT will convene its EGM at 2pm and its trust scheme meeting at 2.30pm.

Due to the Covid-19 situation in Singapore, unitholders will not be able to attend the EGMs or the trust scheme meeting in person.

Instead, they may participate by observing and/or listening to the proceedings via a live audio-visual webcast, or a live audio-only stream, the managers said. Questions can be submitted in advance.

CMT unitholders who wish to register for its EGM and submit questions must do so by 10.30am on Sept 26, while CCT unitholders must do so by 2pm on the same day.

The independent directors of the managers have recommended that unitholders vote in favour of the proposed merger.

Said Tony Tan, chief executive officer of CMT's manager: "The overarching trend towards mixed-use precincts and integrated developments emphasised in the URA (Urban Redevelopment Authority) Master Plan 2019 is now expected to accelerate post-Covid-19. The rationale of the proposed merger therefore remains valid, and has been reinforced by the impact of the pandemic."

In January this year, CCT and CMT unveiled plans to merge and create a Reit juggernaut via a $8.27 billion cash and stock deal.

CMT units closed flat at $1.96 on Thursday, while CCT units finished at $1.68, up $0.01 or 0.6 per cent.