Shares of CapitaMalls Asia surged as much as 22% to its highest in more than a year on Tuesday after CapitaLand offered to buy out minority shareholders in the shopping mall operator.

CapitaMalls shares hit as high as $2.21, just short of the offer of $2.22 per share from CapitaLand - Southeast Asia’s biggest property developer. The gain pushed up the benchmark Straits Time Index to its highest in nearly 7 months.

Nearly 115 million CapitaMalls shares were traded, more than 11 times its average full-day volume over the past 30 days. CapitaLand shares jumped more than 5%.

Maybank Kim Eng maintained its “Buy” rating on the CapitaMalls shares, with a target price of $3.85.

“If the privatization is successfully executed, it would be one of CapitaLand’s most astute acquisitions, allowing it to leverage on CapitaMalls’ retail expertise while keeping it as a key earnings driver,” the brokerage said.

The Straits Times Index rose 1% to 3.248 - highest since Sept. 20 and outperforming a flat Asian market.

Among other gainers, shares of Hotel Properties surged to a near 11-month high after a consortium that includes Singapore tycoon Ong Beng Seng and Wheelock Properties (Singapore) offered to buy Hotel Properties for $3.50 per share.