Any feature to cater for upcoming potential CCT and CMT merger?

Q&A
1

As per topic description, will there be an automatic update for friends who have either of the stocks in their portfolio?
Prefer to have an automatic feature, if not i guess some of us may need to manually adjust (buy/sell) when the merger happens.

2

I think this is similar to this => Update ASCENDAS-HTRUST to ASCOTT TRUST - #2 by yongkiong

As I am not following this merger, I am actually not clears about the terms and conditions.

  1. If someone can tell me about the terms and conditions.
  2. And we can all agree on how to properly handle it.
  3. I can definitely try to add the ability in StocksCafe to automatically handle.

Cheers,
Evan

Edit: To prevent users having to read through the whole thread. I am posting the solution here!

Under the Trust Scheme, CMT will be acquiring all the units in CCT held by CCT Unitholders in exchange for a combination of new units in CMT and cash. The consideration for each CCT Unit under the Trust Scheme (Scheme Consideration) comprises 0.720 new CMT Units (Consideration Units) and S$0.2590 in cash (Cash Consideration).

  1. Create a sell transaction for all your CCT (SGX:C61U) shares at price 0.72 x 1.93 + 0.259 = 1.6486.
    Note: 1.93 is the price of CMT on 19 Oct 2020.

  2. Create a buy transaction for CMT (SGX:C38U) of 0.72 x number of shares of CCT that you had at price = 1.93

3

Hi Evan,

  • CCT unitholders will receive 0.72 of new CMT units + S$0.259 in cash per CCT unit
  • CMT’s issue price for new shares will be fixed at S$2.59 per unit.

Is there any other information you will need? Thanks!

4

Hi,

Thanks for the info. I have two questions.

  1. When will this happen? That is, on which date should the actions be executed?
  1. What does this mean? CMT will cease to exists? Or CCT wil be merged into CMT?

Thanks,
Evan

5

CCT is being merged into CMT. CCT shareholders get .72 shares in CMT for every share they own in CCT. They also receive .259 in cash per CCT share.

The requisite shareholder meetings and regulator approvals have not happened yet, so it is still just an offer.

6

Thanks. In this case, would it be better to wait till the deal is finalized before we invest more time in it?

7

No rush on current case, but the activity is one that will continue in the market. Mergers are predicted for REITS as they bulk up in size to enter indexes.

8

Agree. Maybe we should eventually set up protocols on how to handle them automatically in StocksCafe.

9

yeah. we can discuss when it’s approved :slight_smile: good to have protocol

1 Like
10

OK, the deal is done. Under the Trust Scheme, CMT will be acquiring all the units in CCT held by CCT Unitholders in exchange for a combination of new units in CMT and cash. The consideration for each CCT Unit under the Trust Scheme (Scheme Consideration) comprises 0.720 new CMT Units (Consideration Units) and S$0.2590 in cash (Cash Consideration).

My instinct is to sell the CCT shares first, then show the acquisition of the CMT shares, but what is the correct sale price for CCT and the correct buy price for the new units?

11

I would assume the price of CCT would be 0.72 CMT price + 0.259? I think we can set it to the close of the day this happen or something like that?

12

duh/head slap. Of course you are right. I am just being impatient and trying to enter today. Will have to wait for actual closing.
Cheers.

1 Like
13

Hi Evan,

Are you making this merger feature automatic?

14

Hi,

Nope. I believe it would still be best to be manual.

1 Like
15

Hi,

I did it manually since its already merged today.
Basically i used end last Friday CMT price. I assumed I sold cct at 0.72cmt price + 0.259, and bought 0.72cct shares at cmt price.

Hope it helps.

Thanks,
Bernard

1 Like
16

Hi Evan,

What about the clean-up dividends?
Will you set it across the whole site, or do we key in manually?

17

Hi,

What do you mean by clean-up dividends?

18

Hi Evan,

It has not announced yet, but there is. Current CCT status is XD and XE.

Below screenshot captured from the EGM minutes.

image
image1244×696 142 KB

19

Hi Yong,

Thanks for the information. I see.
We already have a placeholder dividends ready -> https://stocks.cafe/friend/viewissue?issue_id=1853
Once the amount is determined, please let me know and I will update that amount system wide.

Cheers,
Evan

20

Hi Evan,

That is on issue #1853 is CMT, the one Im referring to is CCT. :smiley: