SINGAPORE (April 8): CapitaLand has made a convincing case for why its proposed acquisition of the Ascendas-Singbridge group from Temasek Holdings is in its long-term interest. But it hasn’t demonstrated that its minority investors are being treated fairly in the transaction. Temasek quite obviously benefits at their expense.

CapitaLand has proposed to acquire Ascendas-Singbridge for almost $6.036 billion, to be satisfied by an equal proportion of cash and new shares priced at $3.50 each. The price tag for Ascendas-Singbridge was reached by valuing its stakes in its real estate investment trusts (REITs) at market prices, coming up with an agreed fair value for its funds management business, and considering the net asset value of its remaining businesses.

See: CapitaLand and Ascendas-Singbridge in $11 bil deal to create Asia’s largest diversified real estate group

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook