Date: December 11, 2024
The Securities Investors Association (Singapore) (SIAS) would like to draw the attention of Suntec REIT unitholders to the mandatory conditional cash offer by Aelios Pte. Ltd. for all outstanding units in Suntec REIT.
On 5 December 2024, Aelios Pte. Ltd. triggered a mandatory general offer by acquiring 62.54 million units at S$1.16 per unit, raising its aggregate unitholding from 29.31% to 31.45%.
Under Rule 14 of the Singapore Code on Take-overs and Mergers (Code), crossing the 30% threshold obligates the offeror to make an offer for all remaining units.
SIAS would like to emphasise that the offer is “mandatory” in order to comply with the Code. In addition, the offer remains conditional on the offeror securing more than 50% of the REIT (“Minimum acceptance condition”) as at the close of the offer. The offeror has not declared the price to be final and reserves the right to revise the terms of the offer in accordance with the Code.
Unitholders should carefully examine the offer document and the offeree circular, which will include the advice of an independent financial adviser (IFA) and the recommendations of independent directors. The offeree circular is expected within 14 days from the dissemination of the offer document.
SIAS would like to point out that Morningstar Equity Research has labelled the offer as “unattractive”, stating it does not reflect the REIT’s intrinsic value. RHB has also recommended unitholders of Suntec REIT to reject the offer as the offer “severely undervalues the REIT”, given the 44% discount to its net asset value per unit of $2.07.
Since the offer announcement, Suntec REIT units have traded between S$1.18 and S$1.28, notably above the offer price.
SIAS remains steadfast in protecting shareholder rights and promoting informed decision-making.
– Assess the offer in light of their investment objectives
– Consider insights from independent advisors and market analysts
– Monitor market developments, including potential revisions to the offer terms
David Gerald
Founder, President and CEO
SIAS
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