The proposed merger of OUE Commercial Real Estate Investment Trust (C-Reit) and OUE Hospitality Trust (H-Trust), via a trust scheme of arrangement, was approved by holders of both trusts yesterday.
C-Reit unit holders and H-Trust stapled security holders gave the green light on all resolutions pertaining to the merger at separate extraordinary general meetings during the day, according to bourse filings by the trusts' managers.
In the light of the approval, the managers of H-Trust will submit their application to the court for it to sanction the trust scheme, they said yesterday evening after the market closed.
The court hearing is likely to take place on Sept 5, while the expected last day of trading for H-Trust's stapled securities is Sept 12, according to the indicative timeline provided by the managers.
Under the proposed scheme, OUE C-Reit will acquire OUE H-Trust by paying the latter's holders, for every H-Trust stapled security held, 4.075 cents in cash plus 1.3583 new OUE C-Reit units.
This translates to a deal valuation of $1.49 billion in total, with $74.6 million to be paid in cash and the balance to be paid via the issue of 2.5 billion new C-Reit units to H-Trust holders at 57 cents per C-Reit unit.
If the merger goes through, OUE Limited and its related corporations will continue to hold a 48.4 per cent stake in the enlarged Reit.
Mainboard-listed Singapore Technologies Engineering (ST Engineering) yesterday posted an 18 per cent rise in second-quarter net profit to $138.2 million for the three months ended June 30, up from $117.5 million a year ago, on the back of higher earnings from its marine sector.
Earnings per share for the quarter came in at 4.43 cents, versus 3.77 cents for the preceding year.
Revenue for the quarter also rose 8 per cent to $1.78 billion, thanks to its aerospace sector, with newly acquired MRAS as the main contributor.
The group's board has approved an interim dividend of five cents per ordinary share, unchanged from last year, and the dividend payment will be made on Sept 3, ST Engineering said.
For the six months ended June 30, net profit rose 14 per cent to $269.3 million, from $235.2 million a year ago. Revenue also increased 6 per cent to $3.51 billion, up from $3.3 billion for the same period last year.