Sabana Reit clarifies proposed merger with ESR-Reit not an asset sale

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THE proposed merger of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) with ESR-Reit is not an asset sale, but a merger by way of a trust scheme of arrangement that will allow unitholders to stay invested in a 'stronger, larger and more resilient enlarged Reit (real estate investment trust)', Sabana Reit's manager clarified in a bourse filing on Wednesday. Read more at The Business Times.

Under the proposed merger, Sabana Reit unitholders will be entitled to receive new units in ESR-Reit on an agreed exchange ratio of 0.940 ESR-Reit units for every one unit in Sabana Reit.

It added that the pro forma DPU accretion of 12.9 per cent for Sabana Reit unitholders, on a H1 2020 annualised adjusted basis, will be"the highest in the history of S-Reit mergers". Other benefits include improved trading liquidity in the enlarged Reit's units, and greater investor interest.

 

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