SINGAPORE(Nikkei Markets) -- Singapore's CapitaLand said Monday it has agreed to acquire Ascendas-Singbridge from state investment company Temasek for S$6.04 billion ($4.47 billion), creating the largest diversified real-estate group in Asia.
Temasek will receive 50% of the consideration for the two holding companies, namely Ascendas and Singbridge, in cash. The other half will be paid in new CapitaLand shares, which will be priced at S$3.50 each, representing a premium of 11%, or approximately S$0.36, over CapitaLand's one-month volume weighted average price of S$3.1447.
CapitaLand said in its statement that the deal has a total enterprise value of S$10.91 billion, after adding S$4.87 billion of net debt and minority interest values.
The deal will bring CapitaLand's combined total assets under management to over S$116 billion and its asset classes will expand to include logistics and business parks, industrial, lodging, commercial, retail and residential in more than 30 countries, the company said.
Lee Chee Koon, group CEO of CapitaLand, said the deal also adds meaningful scale in India, U.S. and Europe.
Once the transaction closes, Temasek's ownership of CapitaLand will increase to about 51.0% from approximately 40.8%.
Aside from providing business space solutions, Ascendas-Singbridge manages three Singapore-listed trusts, namely Ascendas Reit, Singapore's first industrial and business space trust; Ascendas India Trust, the first Indian property trust in Asia; and Ascendas Hospitality Trust, which comprises a portfolio of 14 hotels in Australia, Korea, Japan and Singapore.