In today’s briefing:
- Ascott Residence Trust Placement – Accretive Acquisition to Bolster Stable Income
- Max Healthcare Placement – Well Flagged but a Large One to Process
Ascott Residence Trust Placement – Accretive Acquisition to Bolster Stable Income
- Ascott Residence Trust (ART SP) is looking to raise US$110m (S$150m) in its primary offering to partially fund the acquisition of nine properties in France, Vietnam, Australia, US and Japan.
- The deal is a relatively large one to digest at 23.6 days of three month ADV, although it would represent just 3.9% of current mcap.
- The proposed acquisitions are expected to be accretive, increasing DPU by 2.8% and would increase the REIT’s proportion of stable income to 71%, up from 69% in end proforma-FY21.
Max Healthcare Placement – Well Flagged but a Large One to Process
- Kayak Investments Holding, an affiliate of KKR & Co Inc (KKR US), is planning to raise US$1.18bn from trimming the majority of its stake in Max Healthcare Institute (MAXHEALT IN).
- The deal is a large one and assuming the upsized option is exercised, the offer size would represent 26.83% of outstanding shares and 414.9 days of three month ADV.
- The firm’s financial prospects are decent with analysts in general bullish on the stock. However, the large deal is offered at a tight 0-3.3% discount to last close.
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