MCT - MNACT Proposed Merger New Option - Full Cash

I have previously written about the proposed merger between Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) here.

In that post I also included some calculations to gauge which was the best option for me based on the original two options offered by MCT namely

 

Option 1: Cash + Scrip

 

Option 2: 100% Scrip

 

At that point of writing, option 1 was the best for me as it offered the highest cash value then.

 

Today, a third option has been given to MNACT unitholders which is

Option 3: 100% Cash

More details can be found here.

With option 3, MNACT unitholders can receive $1.1949 for each MNACT unit he or she possesses.

This is clearly the best option for me right now. Based on my holdings of 4,000 units of MNACT and the current MCT share price of $1.88, the return in terms of cash value for the three options are as follows.

Option 1: $4,531.57

Option 2: $4,484.18

Option 3: $4,779.60

Option 3 would give me a return of around 27.5% including dividends collected over the years. Not too bad I would say.

For now my plan is to monitor the share price of MNACT closely for the next couple of months. If the open market price goes above $1.1949 I would likely offload my MNACT units in the open market.

At current point of writing, MNACT is trading at $1.18 and testing $1.19.

MCT is trading at $1.88 after opening at $1.95.