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Wednesday, July 3, 2019

Ascott Residence Trust (ART) buys Ascendas Htrust (AHT) for S$1.0868 per share

AHT last traded at 0.975.

My average entry was 0.82 for 235,000 units.

The purchase price of 1.0868 represents about a 32.5% gain over what i paid for the shares, excluding dividends received.

Including dividends, the XIRR rate of return would be about 26.7% - possibly one of my best performance in 4.5 years of investing.


Value
Date
BUY
-141432.15
07-Sep-17
Div
4641
12-Dec-17
BUY
-51492
06-Apr-18
Div
7356
19-Jun-18
Div
6603
07-Dec-18
Div
7567
18-Jun-19
cash out
255398
03-Jul-19

XIRR
0.267298812


The low down

The purchase would be paid in both cash and Ascott units. I would have preferred an all cash deal.  ART's units are severely over-valued and AHT holders are being shortchanged by being paid in ART shares, which appear to have been artificially inflated, in preparation for this merger arrangement.

The proposal 

Each AHT unit = 0.0543 in cash and 0.7942 Ascott Reit-BT units issued at a price of S$1.30 (its all time high since 2014 - yuck much?)

The new entity will be named Ascott Reit-BT. 



Post-merger DPU for ARBT (at $1.30)

This proforma DPU for ART would have been 7.34 cents per share, or a 5.5% yield at $1.3.
Erm, I'll pass. Thanks.

Looking at the above, it would probably be better for me to sell all my AHT shares in the open market once the TH is lifted. Hopefully i would be able to sell at the proposed purchase price.

 DYODD.

Onward to FI friends. 



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