(Bloomberg) -- Mapletree Commercial Trust and Mapletree North Asia Commercial Trust have been given the green light by shareholders to merge in a S$4.2 billion ($3.1 billion) deal to expand across Asia.
Owners of both units -- whose largest holder is state investment firm Temasek Holdings Pte. -- approved the proposal at extraordinary general meetings on Monday. When completed, the transaction will make the combined entity the seventh-largest real estate investment trust in Asia with an expected market value of about S$10.5 billion.
Around 91.7% of Mapletree Commercial Trust’s unitholders voted for the proposed merger, while 86.2% of Mapletree North Asia Commercial Trust’s unitholders supported the move.
Read more on the deal as originally proposed
The approval follows earlier criticisms by shareholders in both REITs, including that the deal undervalues Mapletree North Asia Commercial Trust’s assets. Singapore’s Securities Investors Association also questioned the necessity of the combination, saying there were “no operational synergies.”
As part of the deal, Mapletree Commercial Trust is offering to pay a cash consideration of S$1.1949 per share of Mapletree North Asia Commercial Trust. There are also options to receive payment in Mapletree Commercial Trust shares or a combination of stock and cash.
Proposed last December, the merger seeks to bring long-term expansion opportunities for Mapletree Commercial Trust, which currently only focuses on Singapore commercial real estate. The new entity will pursue growth in other Asian markets including China, Hong Kong, Japan and South Korea.
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