CMT + CCT = CICT

After a long 9 months wait since my first post on CMT + CCT = CICT in Jan 2020, this merger proposal is finally approved.

All resolutions in the CapitaLand Mall Trust and CapitaLand Commercial Trust EGMs are passed today on 29 Sep 2020.

This means CMT + CCT = CICT will confirm take place and be completed before end Nov 2020.

Both EGMs started with a brief presentation and recap on the benefits of this merger. 

The benefits can be summarized as such:

a) to future proof for large acquisitions and grow beyond Singapore
b) to improve credit rating and boost financing power
c) DPU accretive to unitholders of both Reits
d) reduce single asset class risk through diversification

CapitaLand Mall Trust EGM

Resolution 1: To approve the proposed amendments to the trust deed constituting CMT (99.75% For)

Resolution 2: To approve the proposed merger of CMT and CapitaLand Commercial Trust by way of a trust scheme of arrangement (the "Merger") (98.89% For)

Resolution 3: To approve the allotment and issuance of units of CMT to the holders of units in CapitaLand Commercial Trust as part of the consideration for the Merger (98.88% For) 

The CEO Tony Tan concluded the meeting by thanking shareholders for the unwavering support for this transformative merger and they will continue to work for sustainable dividends for great interest of unit holders.

CapitaLand Commercial Trust EGM

Resolution 1: To approve the CCT Trust Deed amendments (96.04% For)

Resolution 2: To approve the proposed trust scheme (98.23% For)

The CEO Kevin Chee is grateful for the decisiveness of CCT shareholders and thankful for the unwavering confidence and trust in supporting the merger. He has also mentioned about waiver of odd lots trading offered by several brokerage houses to cater to CCT shareholders having to deal with odd lots after receiving the CICT shares. 

We can refer to the indicative timetable found on Capitaland Mall Trust slides to understand what will happen next.

As a CMT shareholder, no action is required and there will be some sort of cleanup distribution to reconcile the books before listing of CICT entity. As a CCT shareholder, one is expected to receive 0.72 share of CICT and 25.9 cents for every share of CCT owned. The 25.9 cents of cash consideration capital return is expected to be credited on 28 Oct 2020. CCT is expected to be delisted after 16 Oct 2020.

I am looking forward to the listing of CICT on 21 Oct 2020 and happy to be onboard this largest Reit in Singapore. 

Thanks for reading. 

With Love & Peace,

Qiongster