Suntec Reit: Mandatory Offer Closes on February 7
Extension of Closing Date for Mandatory Cash Offer
The closing date for the mandatory conditional cash offer made by property tycoon Gordon Tang and his wife Celine to acquire all units of Suntec Real Estate Investment Trust (Suntec Reit) has been extended to 5:30 pm on February 7.
No Change in Offer Price
The offer, initially set to close on February 3, will not see the offer price increased from the previous S$1.19 per unit. After adjusting for the payment of Suntec Reit’s fourth quarter distribution to unitholders, the offeror, Aelios, intends to pay unitholders S$1.1743 for each unit if the offer becomes unconditional in all respects in accordance with its terms.
Update on Unitholder Acceptances
The level of acceptances as at February 3 will be announced by 8:00 am on the next market day.
Background on the Offer
Aelios, an investment holding company, initially acquired a 31.5% stake in Suntec Reit through on-market transactions at S$1.16 per unit. This triggered the mandatory general offer, as per Rule 14.1 of the Take-over Code, which requires entities controlling more than 30% of a Reit to make a mandatory offer to acquire the remaining units.
Aelios’ Intention to Maintain Listing Status
The company has stated its intention to maintain the listing status of Suntec Reit on the Singapore Exchange following the completion of the offer.
Conclusion
The extension of the closing date for the mandatory cash offer provides more time for unitholders to consider the offer. As the offeror, Aelios, is not planning to increase the offer price, it remains to be seen how this will impact the outcome of the offer.
FAQs
Q: What is the new closing date for the mandatory cash offer?
A: 5:30 pm on February 7
Q: Will the offer price be increased?
A: No, the offer price will remain at S$1.19 per unit, with adjustments for the payment of Suntec Reit’s fourth quarter distribution to unitholders.
Q: What is the current stake of Aelios in Suntec Reit?
A: Aelios and its concert parties own or control close to 992 million units, or approximately 33.8% of the total issued units of Suntec Reit.
Q: What is the intention of Aelios regarding the listing status of Suntec Reit?
A: Aelios intends to maintain the listing status of Suntec Reit on the Singapore Exchange following the completion of the offer.
