CapitaLand/ CapitaMalls Asia

CapitaLand/ CapitaMalls Asia: CapitaLand has obtained 92.7% stake in CapitaMalls Asia (CMA) for its unconditional cash offer of $2.35/share. Following the close of the offer on 9 Jun, shares in CMA will be compulsorily acquired and the counter will be subsequently delisted from SGX. The street is generally positive on a successful delisting of CMA, given that CapitaLand's holding company discount should potentially be removed, on top of a more streamlined and integrated group structure to reduce operating overheads, translating into higher returns on equity in the longer term. Further, market watchers hypothesize that there may be a reallocation of funds from CMA to CapitaLand shares in the short term after the compulsory acquisition has completed. At $3.18, CapitaLand trades at 0.82x P/B, just under its 3-year historical average of 0.85x.