Singapore's CapitaLand, Southeast Asia's largest property firm by market value, said on Monday that one of its wholly-owned subsidiaries may fully take over Ascott Group, its 67-per cent owned service residence unit.
'Details of such offer, if made by the CapitaLand subsidiary, will be set out in an announcement of its firm intention to make the offer,' the property developer said without naming the subsidiary.
The announcement will be made on Jan 8 through the subsidiary's financial adviser, CapitaLand said.
Shares in CapitaLand were halted on Monday pending the announcement. CapitaLand's units Ascott Group and Ascott Residence Trust also halted trading in their shares.
Ascott Group, which has a market value of US$1.35 billion, is the largest serviced residence operator in Europe and Asia, with about 600 units for rent in Singapore.
Ascott Residence Trust, which spun off from Ascott in 2006 and owns 18 properties across Asia and Australia, is 27-per cent owned by CapitaLand and 19-per cent owned by Ascott.
Shares in CapitaLand rose 1 per cent in 2007, underperforming the 17 per cent gain in the benchmark Straits Times Index and the 12 per cent rise in Singapore's property index .
Shares in Ascott slid 24 per cent last year. -- REUTERS
Source : Business Times - 7 Jan 2008
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