Stoneweg Europe Stapled Trust's Managers Acquisition Appears Value Accretive

Dow Jones
09/30

0234 GMT - Stoneweg Europe Stapled Trust's move to internalize its management function through an acquisition of its managers appears value-accretive to DBS Group Research's Dale Lai. The new structure after the deal allows Stoneweg to retain its management fees and receive third-party revenue through the acquisition of third-party service contracts, he says in a note. The recurring management income and improved earnings retention could support Stoneweg's longer-term growth strategy, he says. The analyst estimates the deal could lift the property stapled trust's distributions by up to 5.9% after the transaction completes. Stapled securities are flat at 1.49 euros.

 

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