Activist investor Quarz Capital Management has opposed to terms of the proposed S$4.2bn ($3.1bn) merger of Mapletree North Asia Commercial Trust (MNACT) and Mapletree Commercial Trust (MCT), stating that the deal undervalues MNACT. This comes over a month after the proposed deal was first announced. In an open letter, Quarz said that while it supports the deal rationale, it objects to the merger ratio and price. It thus urged MNACT to negotiate an improved offer from MCT. Quarz has previously successfully blocked a 2020 merger between two Singapore REITs whose managers are owned by a unit of ESR Cayman. The company said that it, together with its affiliates, holds substantial stakes that rank them among the top 10 unitholders of MNACT. MNACT’s SGD 3.5% Perp traded at 97.57 to yield 4.12%.
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In related news from Singapore, property developer Oxley Holdings reported profits of S$23.5mn ($17.5mn) for the six months ended December, up 3% YoY on revenues of S$506.4mn ($376.4mn), 13% lower due to lower contribution from the Royal Wharf project in the UK. That was partly offset by higher revenues from projects in Singapore and sale of land parcels in Australia. The company said that it had sold 97% of its residential units with plans to sell the remaining 3% in 2022. The group plans to focus on projects in developed countries that generate higher profit margins such as the Riverscape project (formerly known as Deanston Wharf) in the UK and Connolly Station in Ireland. Oxley’s SGD 6.5% 2023s traded at 98.88 to yield 7.65%.
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