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99.59% of the over 3,400 CapitaLand shareholders backed a capital reduction and distribution in specie, while 97.58% approved the scheme arrangement.
CapitaLand shareholders “overwhelmingly” voted in favour of the property giant’s proposal to privatise its development operation while spinning off its fund management business, reported Mingtiandi.
Over 3,400 shareholders voted by proxy at a virtual extraordinary general meeting and scheme meeting, with 99.59% backing a capital reduction and distribution in specie, while 97.58% approved the scheme arrangement.
The completion of the proposed deal will see CapitaLand’s lodging business and investment management platforms consolidated into CapitaLand Investment Ltd (CLI) that will be listed on the Singapore Exchange (SGX). The group’s development business, on the other hand, will be privatised.
Based on the terms of the restructuring, eligible shareholders will get the equivalent of $4.1 per CapitaLand share in cash and scrip, inclusive of one CLI share for every share in the existing company.
“I would like to thank our shareholders for the resounding support,” said Lee Chee Koon, CEO of CapitaLand group.
“I am deeply humbled by and grateful for their trust. With CapitaLand’s restructuring off to a positive start, we can now push ahead with confidence to execute and deliver on our commitment,” he added as quoted by Mingtiandi.
Last month, CapitaLand said the listing on SGX would make CLI Asia’s biggest listed real estate investment manager and the third biggest globally.
The newly-minted fund manager will begin with $115 billion of real estate assets under management and $78 billion of real estate funds under management that are held via firms listed and unlisted across the US, Europe and Asia Pacific.
CapitaLand will hold a 51.76% stake in CLI upon its listing. Meanwhile, the privatised development business will continue under the CapitaLand name. It will be fully held by CLA Real Estate Holdings, which owns 52% of CapitaLand and is in turn fully owned by Singapore’s primary state holding firm, Temasek.
“These two core entities will complement and mutually reinforce each other,” said Lee. “They represent the future of CapitaLand.”
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.