Major Move by CICT to Acquire CapitaSpring!

In a bold strategic play, Capitaland Integrated Commercial Trust (CICT) has unveiled plans to boost its portfolio by acquiring the remaining 55% stake in the iconic CapitaSpring for a staggering S$1 billion. This news hit the market on Tuesday, August 5, sparking considerable interest among investors!

A Lucrative Placement Announcement!

To finance this ambitious acquisition, CICT is launching an attractive placement of over 237.5 million new units, aiming to garner about S$500 million. The minimum price for these new units is set at S$2.105, offering potential buyers a sweet deal with a discount ranging from 4.1% to 5.7% compared to the recent trading prices!

Who’s Behind the Deal?

Citigroup Global Markets Singapore, DBS, and JP Morgan Securities Asia are on board as the joint bookrunners and underwriters, working closely with CICT’s management to ensure a successful placement. Expect these new units to hit the Singapore Exchange on August 14!

Distribution Per Unit Expected to Rise!

For existing unit holders, there is good news on the horizon! The trust’s manager anticipates a distribution quantum per unit, as of August 13, to be estimated between S$0.0692 and S$0.0702, following a solid H1 distribution per unit (DPU) of S$0.0562 set for disbursement around September 18.

Allocation of Proceeds!

Breaking down the allocation of the raised funds: approximately S$466.5 million (93.3%) will directly support the acquisition of CapitaSpring, while S$26.3 million (5.3%) will go toward refinancing debt and enhancing assets. Additionally, S$7.2 million (1.4%) is earmarked for covering transaction-related expenses.

Market Reaction!

Despite the ongoing trading halt called by CICT, shares closed up by 2.3%, reflecting strong market confidence—from S$2.24 early on Tuesday. Investors seem optimistic about the potential growth and profitability this acquisition could bring!

What’s Next?

As CICT moves forward with this transformative acquisition, all eyes will be on its impact on the market and unit holder returns. Stay tuned for updates as this exciting story unfolds!