CapitaLand/ CapitaMalls Asia

CapitaLand/ CapitaMalls Asia (CMA): In relation to its $2.22/share voluntary cash offer for CapitaMalls Asia, StanChart estimates the transaction to be 20% accretive to 2015 earnings and 24% accretive to ROE for CapitaLand. StanChart believes the transaction is a good way to redeploy cash that CapitaLand received from the divestment of Australand. CLSA recommend existing CMA shareholders to accept the offer given the fragmented shareholding base lowering any chances of a revised offer. Other beneficiaries from this news include Global Logistic Properties as possible alternatives, while Ascendas REIT and Keppel Land are potential stocks to be included in index post CMA’s delisting. Latest broker recommendations for CapitaLand: CLSA downgrades to Outperform, lowering TP to $3.18 (from $3.55) StanChart reiterates Outperform with $3.78 TP