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Thu, 19 Jul 2018 – 7:54 AM
UPDATED Thu 19 Jul 2018 – 11:53
Wheelock Properties (Singapore) listed Hong Kong-based parent company offers 2.10 Singapore dollars per share to privatize the listed real estate developer.
The voluntary offer of Wheelock and Company, which already owns 76.21% of the company, is unconditional. The deadline for the offer has not been announced, but DBS – who was named financial advisor to the proponent – said the first scheduled closing date would be Sept. 7.
Such a price values the company at 2.51 billion Singaporean dollars, with a sum in the background indicating that Wheelock and Company would pay $ 597.7 million for all the shares it has does not already have.
Wheelock Properties jumped on the opening bell Thursday after stopping trading. lifted, to breach the offer price of S $ 2.10. At 11:30, the counter had reached $ 2.17, a gain of $ 0.43, or 24.7 percent, some investors seem to bet that the price of supply was rising.
The price of the offer – higher than any closing price since January 2010 – marks a premium of 20.7 percent on the previous meter close at $ 1.74 on July 13, before the 39, stopping the negotiations.
The price is also up 13.3 per cent on the 12-month volume-weighted average price, while the implicit multiple of the NAV price of 0.78 times is higher than the historical averages of the last 10 years, according to the announcement of the offer. If we take into account a final dividend of six cents paid in May, the adjusted price / net asset value rises to 0.8 times.
Wheelock Properties owns Scotts Square and Wheelock Place at Orchard Road. His recent residential real estate developments include The Panorama and Ardmore Three, as well as other projects in the portfolio, such as Grange Residences and Oasis Park.
Wheelock and Company stated that, if it could remove Wheelock Properties, there would be more flexibility to manage the business, optimize the use of its management and capital resources, and make operational changes. . He also noted that privatization would give the owner and management a "longer time horizon to manage and plan" the company's activities.
The announcement of the offer also presented the OPA as an opportunity for investors to withdraw their cash. that the average daily volume of transactions represented only 0.053% of all shares issued during the past year.
Deborah Ong, an analyst at OCBC Investment Research, said The Business Times that she was not surprised by the offer of Wheelock Property (Singapore) s & # 39; 39; is translated by a depreciation of the course of the book (and) has a strong shareholder with a majority controlling interest, as well as a "But she added:" We believe that the price of the offer of 2, $ 10 has arrived at the bottom end, and it is 10.3% below our fair value of $ 2.34. "[19659004] Royston Foo, which covers real estate for Smartkarma said the takeover bid was "convincing" but noted that the price of the offer was lower than its estimate of the fair value of 2.66 Singapore dollars
. the initiator to raise its bid price to further encourage shareholders to accept the offer, "he told BT, adding that the latest price increase" seems to indicate an anticipation of A possible higher bid price. "
Fragmented minority shareholding as a possible challenge for the bidder to reach the 90 percent threshold for compulsory acquisition." Investors are likely to retain their shares in observing the level of acceptances and waiting for a possible revision of the offer, Wheelock and Company will then be forced to soften the offer to be better accepted, "he said.
Various securities observers have been considering a potential takeover of the company for some time.In June 2017, Peter Ng, an analyst at Phillip, called Wheelock Properties "the leading candidate for privatization," with the house opening a cover with a call "buy" and a target price of 2.28 US dollars
. seven working days of their valid acceptances being received, said the announcement of the offer on Thursday.
The document d & rsquo; Offer will be sent to shareholders in a delta i from two to three weeks. The Wheelock Properties Board will also appoint an independent financial advisor to advise its independent directors, and their advice and recommendations will be shared with shareholders in a future circular.
The board advised shareholders to exercise caution when dealing with their shares. Shareholders were asked to refrain from doing anything "prejudicial to their interests" until the information and recommendations of the independent directors and the independent financial advisors were taken into account.
after-tax profit of S $ 30.8 million in the first quarter for the three months up to March 31, compared to $ 9.19 million for the same period of the previous year , on a turnover of 40.3% to 56 million Singaporean dollars. –
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