Singapore’s Aelios, owned by billionaire couple Gordon and Celine Tang, on Thursday launched a mandatory general offer to buy shares in Suntec Real Estate Investment Trust that valued the REIT at S$3.39 billion ($2.53 billion).
The investment holding company, which already owns almost a third of the REIT, will buy the shares at S$1.16 each in cash.
The offer matches the shares’ closing price on Dec. 4. It is also close to the shares’ average closing price over the past 30 days, Reuters calculations showed.
The REIT’s share price climbed as much as 8.6% to S$1.27 on Friday versus a 0.35% fall in the local benchmark index. It has climbed 4% so far this year, LSEG data showed.
Morningstar equity analyst Xavier Lee, in a research note on Friday, recommended investors reject the offer, arguing it does not reflect the REIT’s intrinsic value.
The research house maintains a fair value of S$1.38 on the stock, the note showed.
Aelios bought more than 62 million of the REIT’s shares on Thursday, increasing its stake to 31.45% from 29.31% and triggering the offer under Singapore Stock Exchange rules.
It said it has sufficient resources to buy the remainder. It will need $1.74 billion, Reuters calculations showed.
Aelios said it intends to maintain the REIT’s bourse listing.
United Overseas Bank and DBS are acting as joint financial advisors for Aelios.
ESR Group owns 10.26% of the REIT, LSEG data showed. ESR itself on Wednesday received a take-private offer from a consortium comprising Starwood Capital and Warburg Pincus in a deal valued at HK$55.19 billion ($7.09 billion).
Gordon and Celine Tang were Singapore’s 49th richest people in 2023, according to Forbes. They took Chip Eng Seng private last year in a deal that valued the property and construction group at $440 million.
Reuters
