MapleTree NAC Trust

[lzydata]

OMG it really did come out at 8.59am, and 9.00am.

 

[soneat]

It is kind of a "win-win" situation for both.

MNACT is on track for recovery but festival walk rental reversion is a big drag. Gateway Plaza in Beijing is challenging too. Japan offices are fine.

MCT is doing OK but acquiring MNACT can enhance its DPU, NAV plus gives its a geographical diversification.

My guess is 0.6MCT for every 1MNACT, hence valuing MNACT at S$1.2 based on MCT's closing price of S$2 yesterday.
MCT wins because it gets an immediate benefit from DPU, NAV improvement plus a geographical diversification.
MNACT wins because its value gets crystalized (and this is probably why the price surged with large volume yesterday).

So if the above is indeed the case, then this combined entity will be quite similar to CICT in terms of sector (Retail, Commercial) mix.

Looks like I am VERY CLOSE.

The consideration for each MNACT Unit (the “Scheme Consideration”) comprises either (a) 0.5963 new units in MCT (“MCT Units”, and the new MCT Units to be issued, the “Consideration Units”) (the “Scrip-Only Consideration”), or (b) a combination of 0.5009 Consideration Units and S$0.1912 in cash (the “Cash Consideration”, and together with the Consideration Units, the “Cash-and-Scrip Consideration”), at the election of each unitholder of MNACT (“MNACT Unitholder”). Based on an issue price of S$2.0039 per MCT Unit1 , the Scheme Consideration is S$1.1949 and implies a gross exchange ratio of 0.5963x.

 

[lzydata]

It is kind of a "win-win" situation for both.

MNACT is on track for recovery but festival walk rental reversion is a big drag. Gateway Plaza in Beijing is challenging too. Japan offices are fine.

MCT is doing OK but acquiring MNACT can enhance its DPU, NAV plus gives its a geographical diversification.

My guess is 0.6MCT for every 1MNACT, hence valuing MNACT at S$1.2 based on MCT's closing price of S$2 yesterday.
MCT wins because it gets an immediate benefit from DPU, NAV improvement plus a geographical diversification.
MNACT wins because its value gets crystalized (and this is probably why the price surged with large volume yesterday).

So if the above is indeed the case, then this combined entity will be quite similar to CICT in terms of sector (Retail, Commercial) mix.

Actual proposed consideration is 0.5963 MCT units. Awesome guess!

 

[Squaredot]

Sigh...odd numbers again.

 

[soneat]

Actual proposed consideration is 0.5963 MCT units. Awesome guess!

This is more than a guess as I have seen many rounds of such mergers and I know these counters well and roughly know what they will do.

Look at Pg 15 and 16 for the key benefits for both reits.
https://links.sgx.com/FileOpen/1_MN...31Dec2021.ashx?App=Announcement&FileID=696256
MCT: DPU and NAV accretive to MCT Unitholders
MNACT: Scheme Consideration is at a premium over MNACT’s trading prices and in line with NAV per Unit

It's similar to what I posted earlier.

Also, earlier I estimated MCT is going to value MNACT at S$1.20 instead of the previous published figure of S$1.265. It turns out that in this announcement, the latest MNACT valuation as of 31st Oct 2021 is actually S$1.195.

 

[o0KelviN0o]

Take 50-50 or MCT only?

What are your preference?

 

[lzydata]

I hate odd lots. Does it make sense for me to sell MNACT at market if it gets near 1.19 and buy MCT from the open market instead? I have 20K shares.

If you take scrip+cash you will get 0.5009 x 20k = 10018 MCT units, so the residual is just $36?

Or 0.5963 x 20k = 11926 units, residual 26 units is $52.

Or let us just wait for the next rights issue or DRP

 

[lzydata]

This is more than a guess as I have seen many rounds of such mergers and I know these counters well and roughly know what they will do.

Look at Pg 15 and 16 for the key benefits for both reits.
https://links.sgx.com/FileOpen/1_MN...31Dec2021.ashx?App=Announcement&FileID=696256
MCT: DPU and NAV accretive to MCT Unitholders
MNACT: Scheme Consideration is at a premium over MNACT’s trading prices and in line with NAV per Unit

It's similar to what I posted earlier.

Also, earlier I estimated MCT is going to value MNACT at S$1.20 instead of the previous published figure of S$1.265. It turns out that in this announcement, the latest MNACT valuation as of 31st Oct 2021 is actually S$1.195.

There really have been a lot of REIT mergers, can have a template already.

 

[soneat]

This is more than a guess as I have seen many rounds of such mergers and I know these counters well and roughly know what they will do.

Look at Pg 15 and 16 for the key benefits for both reits.
https://links.sgx.com/FileOpen/1_MN...31Dec2021.ashx?App=Announcement&FileID=696256
MCT: DPU and NAV accretive to MCT Unitholders
MNACT: Scheme Consideration is at a premium over MNACT’s trading prices and in line with NAV per Unit

It's similar to what I posted earlier.

Also, earlier I estimated MCT is going to value MNACT at S$1.20 instead of the previous published figure of S$1.265. It turns out that in this announcement, the latest MNACT valuation as of 31st Oct 2021 is actually S$1.195.

OK, some perspective for those interested.

Short-term wise, I am neutral over the combine entity. Longer-term wise, mildly positive.

This combine entity is similar to CICT :
- By industry, the retail portion is still substantial for both CICT and MPACT (the combined entity), which I personally don't fancy.
- By geography and currency, CICT is 90% SGD with some exposure in EURO and AUD which tends to weaken often. MPACT on the other hand would have slightly better edge as their foreign currency earnings would be in HKD and CNY which is likely to either hold or strengthen over the next few years.
- By valuation, at current price, CICT offers better value.

Congrats to all, who has made $ from MNACT. =D

 

[YLieTat]

Sad for me. I was collecting 6% dividend annually but after merger, the dividend yield will be lowered to 5.3% (assuming full scrip only). Now where can I find another reit with 6% dividend yield?

 

[lzydata]

- By industry, the retail portion is still substantial for both CICT and MCT (I assume MCT wouldn't change name), which I personally don't fancy.

Proposed name for the merged entity is Mapletree Pan Asia Commercial Trust (MPACT)

 

[soneat]

Proposed name for the merged entity is Mapletree Pan Asia Commercial Trust (MPACT)

Oh yes, thanks for that.
Pg 8 of the ppt. Mapletree Pan Asia Commercial Trust (“MPACT”)

 

[abutan]

I guess this is a better deal for MNACT than MapletreeCom. Festival Walk no longer become a worry.

 

[chiokcc]

No unhalt announcement??

 

[starbugs]

I don't think have to worry about odd lots, cos the DRP will probably continue.

Also, it is more worth it to take the 16% cash option, since MCT is projected to open below $2 after the halt.

 

[o0KelviN0o]

CICT is fail

MAGIC investors can no longer get their high dividends

Hope MCT doesn’t go down the same path as CICT

 

[o0KelviN0o]

Oh yes, thanks for that.
Pg 8 of the ppt. Mapletree Pan Asia Commercial Trust (“MPACT”)

Hope this merger can make an iMPACT

 

[starbugs]

Sad for me. I was collecting 6% dividend annually but after merger, the dividend yield will be lowered to 5.3% (assuming full scrip only). Now where can I find another reit with 6% dividend yield?

So many. Suntec, CapitaLand China, Cromwell, the US office trio, Daiwa plus several other smaller reits that I won't touch.

 

[soneat]

Hope this merger can make an iMPACT

positive iMPACT

 

[bluevalley2000]

Is there any mention of timeline in the announcement?