UOBKH: Mapletree Commercial Trust (MCT SP) – Flexibility From New Cash-Only Option
alanyeo
MNACT unitholders have flexibility to choose one out of three options. Besides the existing Scrip-Only Consideration and Cash-and-Scrip Consideration, MCT has added an alternative Cash-Only Consideration. The Scheme Consideration remains unchanged at S$1.1949 for all three options, which is equivalent to MNACT’s NAV per unit.
Preferential offering fully backed by the sponsor. Additional cash required of up to S$2.2b will be funded by Preferential Offering at issue price of S$2.0039 per MCT unit. Sponsor Mapletree Investments has demonstrated commitment and support for the Merger. It has provided an undertaking to subscribe for the Preferential Offering for up to S$2.2b and has agreed to a voluntary six-month lock-up of its unitholdings.
Same pro forma financial impact. The pro forma financial effects of the new cash-only consideration is the same as the cash-and-scrip consideration. To recap, the merger is accretive to MCT’s 1HFY22 DPU and NAV per unit by 8.9% and 6.5% respectively. Pro forma aggregate leverage as of Sep 21 is estimated at 39.2%.
