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Stand down on Ascott REIT in wake of rights issue and acquisitions

Michelle Zhu
Michelle Zhu3/8/2017 04:57 PM GMT+08  • 2 min read
Stand down on Ascott REIT in wake of rights issue and acquisitions
SINGAPORE (March 8): UOB Kay Hian has downgraded its call on Ascott Residence Trust (Ascott REIT) to “hold” from “buy” previously, following Tuesday’s announcement of its $442.7 million rights issue to acquire Ascott Orchard Singapore, Citadines
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SINGAPORE (March 8): UOB Kay Hian has downgraded its call on Ascott Residence Trust (Ascott REIT) to “hold” from “buy” previously, following Tuesday’s announcement of its $442.7 million rights issue to acquire Ascott Orchard Singapore, Citadines City Centre Frankfurt and Citadines Michel Hamburg.

(See also: Ascott REIT launches 91.9 cents/share rights to fund Singapore and Germany acquisitions)

This translates to 91.9 cents per share, which is at a discount of 21.5% to the REIT’s closing price of $1.17 as at Mar 6, and a discount of 17.5% to the theoretical ex rights price.

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