KUALA LUMPUR: A consortium led by Singapore’s Hwa Hong Corporation and Wing Tai Holdings Ltd, in partnership with Malaysia’s Newfields, has proposed to acquire property and hospitality firm Amara Holdings Ltd for S$514.6 million (RM2.29 billion)
The offer includes a cash payment of S$0.895 per share to Amara shareholders, representing a 27 per cent premium over the company’s last traded price on April 23.
The S$0.895 offer price also represents a 42.1 per cent, 44.8 per cent, 46.7 per cent and 48.9 per cent premium over Amara’s volume-weighted average price for the one-month, three-month, six-month and 12-month periods, respectively.
The special-purpose vehicle behind the offer, DRC Investments, has already secured approval from shareholders holding about 90.58 per cent of Amara’s stake, according to Reuters.
The shareholders of DRC Investments consist of Shorea HwaHong Newfields, a variable capital company (VCC) backed by Hwa Hong and the Newfields group of companies; Wing Tai’s unit, Winteam Investment; and Albertsons Capital, whose shareholders are Albert Teo, Amara’s chairman, executive director and chief executive officer (CEO), and Dawn Teo, Amara’s chief operating officer. The three parties own 35 per cent, 30 per cent and 35 per cent, respectively, of DRC Investments.
DRC Investments has stated that its offer price is final, with plans to take Amara private, citing low trading liquidity and challenging macroeconomic conditions.
The offeror believes the offer provides an attractive cash exit opportunity for Amara’s shareholders, offering a compelling premium and price certainty without the added costs of broking or trading fees.
Hwa Hong and Newfields are both active investors in commercial real estate, while Wing Tai specialises in lifestyle retail and hospitality management.
Amara operates a diverse portfolio of lifestyle properties, including hotels and speciality restaurants across Singapore, Thailand, and China.
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