The securities were sold to an unrelated third party for a sale consideration of approximately $162 million.

CapitaLand Investment Limited (CLI) says its wholly-owned subsidiary, The Ascott Limited, has disposed of 185,253,000 stapled securities in CapitaLand Ascott Trust Hmn (CLAS). 

The securities, which represent a 4.88% stake in CLAS, were sold to an unrelated third party for a sale consideration of approximately $162 million. 

Following the transaction, CLI Group’s holding in CLAS has dropped to approximately 24.04% from 28.92% previously. CLAS will cease to be a subsidiary of the group, and is expected to be accounted as an associate.  

According to the group, the disposal forms part of CLI’s asset-light growth strategy, which aims to deliver sustainable growth by optimising capital efficiency and driving high returns on equity. 

The group adds that with the remaining holdings in CLAS, the group remains committed to aligning its interest with CLAS’ stapled security holders over the long term.

Upon completion, CLI Group is expected to record a loss of approximately $141 million, of which approximately $103 million is non-cash in nature. This includes the realisation of foreign currency translation losses and remeasurement of retained stake, as required under the applicable accounting standards.

On a pro forma basis, had the transaction been completed on June 30, the group’s 1HFY2024 net tangible asset (NTA) per share would remain unchanged. 

Had the transaction been completed on Jan 1, CLI Group’s 1HFY2024 earnings per share would have stood at 3.7 cents instead of 6.5 cents. 

Shares in CLI closed 5 cents lower, or down 1.92%, at $2.56 on Dec 19.