MLT announced the acquisition of the Tsing Yi warehouse in Hong Kong yesterday. Here are a few things that investors should take note of MLT’s Tsing Yi acquisition.

Accretive Tsing Yi acquisition

The acquisition is expected to be accretive, with DPU rising from 1.887 SG cents to 1.919 SG cents.

MLT Tsing Yi acquisition DPU accretion

The acquisition will be funded with a mix of debt and equity. MLT is combining the purchase with redemption of perpetual existing securities so the total amount of funds raised will be slightly higher.

Sources and uses of funds for Tsing Yi acquisition  Uses of funds Sources of funds  S$838.4 million purchase consideration  Equity fundraising of S$640 million  S$8.6 million transaction costs  Loan facilities of S$377.3 million  S$4.2 million acquisition fee New perpetual securities of S$180 million  S$350 million of existing perpetual securities redemption ...