OUE Commercial Reit to buy OUE Hospitality Trust
OUE Commercial Real Estate Investment Trust (Reit) said yesterday it would buy OUE Hospitality Trust in a cash-and-stock deal worth $1.37 billion, creating one of Singapore's largest Reits.
Under the deal, OUE Commercial will issue 1.3583 new shares for every OUE Hospitality share and pay $0.04075 per share in cash.
The total deal value is a premium of 1.6 per cent to OUE Hospitality's last close.
The combined Reit will have total assets of about $6.8 billion and will trade under OUE Commercial on the Singapore Exchange, the companies said in a joint statement.
The deal will "significantly enhance our visibility within the S-Reits universe and increase our relevance to a wider investor base", said Ms Tan Shu Lin, chief executive officer of OUE Commercial Reit Management, the manager for OUE Commercial.
The manager owns a 4.79 per cent stake in OUE Commercial, according to Refinitiv Eikon data.
OUE Group, which refers to OUE and its related corporations, will have a 48.3 per cent stake in the combined company, the statement said.
OUE currently owns a 32 per cent stake in OUE Hospitality Trust, Refinitiv Eikon data showed.
Citigroup, Credit Suisse and OCBC Bank are the financial advisers to OUE Commercial, while Bank of America Merrill Lynch is advising OUE Hospitality. - REUTERS
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