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CapitaLand Raises Offer Price for CapitaMalls Asia by 6%

Photographer: Charles Pertwee/Bloomberg

Pedestrians walk past the Ion Orchard mall, jointly owned by CapitaLand Ltd. and Sun Hung Kai Properties Ltd., on Orchard Road in Singapore. CapitaLand, which owns 65.3 percent of CapitaMalls Asia sold shares in the unit in 2009, raising S$2.8 billion ($2.2 billion). Close

Pedestrians walk past the Ion Orchard mall, jointly owned by CapitaLand Ltd. and Sun... Read More

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Photographer: Charles Pertwee/Bloomberg

Pedestrians walk past the Ion Orchard mall, jointly owned by CapitaLand Ltd. and Sun Hung Kai Properties Ltd., on Orchard Road in Singapore. CapitaLand, which owns 65.3 percent of CapitaMalls Asia sold shares in the unit in 2009, raising S$2.8 billion ($2.2 billion).

CapitaLand Ltd. (CAPL), Southeast Asia’s biggest developer, raised a bid to buy the rest of its shopping mall unit after an initial offer last month garnered low interest.

The developer raised its bid by 5.9 percent to S$2.35 from S$2.22 a share for CapitaMalls Asia Ltd. (CMA), the Singapore-based company said in a statement to the stock exchange today, a 4.9 percent premium to yesterday’s closing price. The offer will close on June 9, it said.

The latest deal will help CapitaLand’s increased emphasis on mixed-use developments, which include residential, commercial and retail projects, CapitaLand President Lim Ming Yan said on April 14. CapitaLand sold shares in CapitaMalls Asia in 2009, raising S$2.8 billion ($2.2 billion), and has increased its stake to about 73 percent since the initial offer last month from about 65 percent, according to the company.

“The level of acceptance for the offer was quite low so they have sweetened it as they want to privatize it,” said Vikrant Pandey, an analyst at UOB Kay Hian Pte in Singapore.

With the dividend payout of 0.0175 Singapore cents per share, the new offer is about 6.7 percent above the previous price, he said.

CapitaLand shares declined 0.3 percent to S$3.12 at the close of trading in Singapore. Shares of CapitaMalls Asia rose 4.9 percent to S$2.35, their highest since March 2010, after a trading halt was lifted.

The final offer price “takes into account the opinion stated in the Letter from the Independent Financial Advisor to the Independent Directors of CMA,” according to the statement. CapitaLand has received acceptances for the offer from shareholders representing about 2.6 percent of the issued share capital of CMA as of yesterday, it said.

CapitaMalls Asia owned 105 shopping malls including ION Orchard and Plaza Singapura along the city’s Orchard Road shopping strip valued at S$34.3 billion as of Dec. 31, the company said in a presentation in March.

To contact the reporter on this story: Pooja Thakur in Singapore at pthakur@bloomberg.net

To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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