| MAYBANK KIM ENG | MAYBANK KIM ENG |
Creating An ‘MPACT’ Merger with MNACT for diversification, growth MCT and MNACT have proposed to merge via a SGD4.2b trust scheme of arrangement. The entity to be renamed Mapletree Pan Asia Commercial Trust (MPACT) will become the 7th largest Pan Asian REIT, and 3rd largest SREIT, with a SGD10.5b market cap and a SGD17.1b AUM across Singapore, China, HK, Japan and South Korea. Beyond the strong financial accretion, we see strategic merits from increased AUM diversification, stronger DPU growth, and potentially lower cost of capital. With likely risk of investor following waning due to a diluted Singapore pure-play thesis, execution will remain key, and management of the new REIT will need to prove it can deliver on an expanded growth mandate. We maintain our forecasts and SGD2.35 DDM-based TP (COE: 5.9%, 2.0%) pending deal closure. BUY. |
Malaysia Oil & Gas
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LIM & TAN |
LIM & TAN |
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Mapletree Commercial Trust ($2.00, trading halt) and Mapletree North Asia Commercial Trust ($1.11) jointly announce the proposed merger of MCT and MNACT (the “Merger”) to create a flagship commercial REIT positioned to be the proxy to key gateway markets of Asia. quality portfolio of 18 commercial assets across Singapore, China, HongKong SAR, Japan and South Korea, with assets under management (“AUM”) of approximately S$17.1 billion. We recommend both investors of MCT and MNACT shareholders to accept this offer. For MCT shareholders, they can immediately enjoy an |
Hanwell Hldgs ($0.42, up 1.5 cents) announced the acquisiton of 40,000 ordinary shares or 80% of the issued and paid-up share capital of C.K.H. Food Trading Pte Ltd (“C.K.H.”) and 123 Mart Pte. Ltd. (“123 Mart”) at a total consideration of S$3.3 million. The acquisition is effective 1 January 2022. C.K.H. is a leading food distributor that supplies a wide variety of food products to close to 1,500 food and beverage establishments in Singapore while 123 Mart is a budget friendly grocery minimart.
He added, “I believe the acquisition creates a win-win situation for both companies as Hanwell can leverage on our food service distribution reach and we will also be able to ride on Hanwell’s professional management experience, distribution expertise, operational assets and branding to expand our business.” At $0.42, market cap of Hanwell is S$231mln, trailing 12-mth P/E is 10.6x, dividend yield is 1.9% and its current P/B is 0.8x.
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