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The restructuring document is out. Although it still lacks some numbers but there seems to be a "positive profit alert" inside. In addition, Centurion will be holding ~45% of the REIT post dividend-in-specie. There is no special cash dividend as the majority of the ~497mil of cash proceeds will be rolled on for future development with CCL shareholders benefitting from the dividend in specie instead.
Centurion is currently valued above NAV. I wonder whether would there be any discount for Centurion Accommodation REIT? Or is the fair value adjustment upwards lagging that or its market valuation?
ENTRY INTO LETTER AGREEMENTS IN CONNECTION WITH THE PROPOSED LISTING OF CENTURION ACCOMMODATION REIT
The CCL Group will receive the CCL Divestment Consideration, estimated to be approximately S$1,184.0 million for the Proposed Divestments, S$497.0 million of which will be in cash and S$687.0 million will be in the form of Sponsor Units.
Subject to relevant laws and regulations, CCL currently intends to use (which may be subject to change) the estimated cash proceeds of approximately S$497.0 million raised from the Proposed Divestments in the following manner:
(i) approximately S$1.2 million to pay the estimated professional fees and other fees and expenses which will be incurred by CCL in connection with the IPO of Centurion Accommodation REIT (for the avoidance of doubt, this does not include the fees and expenses incurred or to be incurred by Centurion Accommodation REIT in connection with its IPO);
(ii) approximately S$10.0 million to pay Lian Beng Group Pte. Ltd. to compensate Lian Beng Group Pte. Ltd. in relation to the asset management fees which CCL would receive following the IPO;
(iii) approximately £5.0 million (approximately S$8.8 million3) to fund asset enhancement activities and certain additional works on the PBSA assets in the UK, which will be in Centurion Accommodation REIT’s portfolio;
(iv) approximately S$7.7 million to pay for capital gains tax; and
(v) the remainder to repay debt in connection with the Proposed Transactions, pay the remaining development cost payable in relation to the Relevant Westlite Works, as well as to fund future acquisitions and develop new PBWA assets, PBSA assets and/or assets for other accommodation purposes4.
https://links.sgx.com/FileOpen/CCL%20-%2...eID=851808
Centurion is currently valued above NAV. I wonder whether would there be any discount for Centurion Accommodation REIT? Or is the fair value adjustment upwards lagging that or its market valuation?
ENTRY INTO LETTER AGREEMENTS IN CONNECTION WITH THE PROPOSED LISTING OF CENTURION ACCOMMODATION REIT
The CCL Group will receive the CCL Divestment Consideration, estimated to be approximately S$1,184.0 million for the Proposed Divestments, S$497.0 million of which will be in cash and S$687.0 million will be in the form of Sponsor Units.
Subject to relevant laws and regulations, CCL currently intends to use (which may be subject to change) the estimated cash proceeds of approximately S$497.0 million raised from the Proposed Divestments in the following manner:
(i) approximately S$1.2 million to pay the estimated professional fees and other fees and expenses which will be incurred by CCL in connection with the IPO of Centurion Accommodation REIT (for the avoidance of doubt, this does not include the fees and expenses incurred or to be incurred by Centurion Accommodation REIT in connection with its IPO);
(ii) approximately S$10.0 million to pay Lian Beng Group Pte. Ltd. to compensate Lian Beng Group Pte. Ltd. in relation to the asset management fees which CCL would receive following the IPO;
(iii) approximately £5.0 million (approximately S$8.8 million3) to fund asset enhancement activities and certain additional works on the PBSA assets in the UK, which will be in Centurion Accommodation REIT’s portfolio;
(iv) approximately S$7.7 million to pay for capital gains tax; and
(v) the remainder to repay debt in connection with the Proposed Transactions, pay the remaining development cost payable in relation to the Relevant Westlite Works, as well as to fund future acquisitions and develop new PBWA assets, PBSA assets and/or assets for other accommodation purposes4.
https://links.sgx.com/FileOpen/CCL%20-%2...eID=851808