SINGAPORE (Reuters) - Singapore's CapitaLand
CapitaLand will buy the holding companies of the business of the Ascendas-Singbridge Group, which manages Ascendas Real Estate Investment Trust
The deal will create a group with combined total assets under management of more than S$116 billion ($85.81 billion), CapitaLand and Ascendas-Singbridge said in a joint statement on Monday.
Ascendas-Singbridge is mainly a business space provider, including of logistics and business parks as well as data centres.
"Our complementary strengths position us strongly for growth amidst the changing real estate environment in Singapore and internationally," Ng Kee Choe, chairman of the board of CapitaLand, said in the statement.
The target companies have a combined enterprise value of S$10.9 billion.
Under the agreement, Temasek will effectively receive about S$6 billion, half in cash and half in new CapitaLand shares, which will be priced at S$3.50 a piece.
After the deal closes, Temasek's stake in CapitaLand will increase to about 51 percent from about 40.8 percent.
(Reporting by Aradhana Aravindan; Editing by Richard Pullin and Muralikumar Anantharaman)