An announcement was recently made on the merger of OUE Commercial REIT and OUE Hospitality Trust. I took a look and realized how the merger is a bad deal for both the existing shareholders. In addition, this happened after the OUE Commercial REIT rights issue less than a year ago - OUE Commercial REIT Rights Issue - Very Very Very Bad Deal which meant a double blow for OUE Commercial REIT shareholders.
OUE Hospitality Trust shareholders will be receiving $0.04075 cash + 1.3583 new OUE Commercial REIT shares for every existing OUE Hospitality Trust share. Let's look at the numbers to see why I deemed it as a bad deal.

OUE Hospitality Trust (Before Merger)

Numbers from OUE Hospitality Trust 2018 Annual Report Last Close: $0.735
NAV: $0.75
PB: 0.980
DPU: 0.0499
Dividend Yield: 6.79%

OUE Commercial REIT (Before Merger)

Last Close: $0.52
NAV: $0.71
PB: 0.732
DPU: 0.0348
Dividend Yield: 6.69%
After Merger Pro Forma DPU Pro Forma NAV Pro Forma Aggregate Leverage You...