Temasek the obvious winner from CapitaLand's restructuring

CapitaLand’s proposed restructuring has been heralded as a move that will unlock value for shareholders. The new entity, according to group CEO Lee Chee Koon, will possess a “unique and distinct advantage” over its global peers.

Most analysts agree, adding that the move is positive for other reasons too. Yet if it goes through, not all shareholders will benefit equally. Under the restructuring exercise, CapitaLand will divide its businesses into two entities.

The company will place its property development business under CapitaLand Development (CD), which will be fully owned by CapitaLand. The company, in turn, will be taken private by CLA Real Estate Holdings, an indirect wholly owned subsidiary of Temasek Holdings.