Image: Scotts Square Residences (Source: Christopher Chitty)
Star Attraction, a wholly owned indirect subsidiary of Wheelock and Company, has launched a voluntary unconditional general offer to take mainboard-listed Wheelock Properties (Singapore) Limited private.
Star Attraction, which currently owns 76.21 percent of Wheelock Properties, has presented an offer price of $2.10 per share – effectively valuing the company at over $2.5 billion.
Exceeding the highest closing price since 2010, the offer price represents a “premium of 29.0 percent and 22.8 percent over the one-month and three-month volume weighted average price (VWAPs) up to and including the last trading day of the shares on the SGX-ST prior to the offer announcement date”.
It also translates to a “price-to-net asset value multiple that exceeds the historical averages over the past one, three, five and 10 years on both a cum and ex-cash basis”.
As such, the offer provides shareholders the opportunity to exit their entire investment within the company, which may otherwise prove difficult due to the shares’ low trading liquidity, noted Star Attraction in a release.
Since the offer is unconditional, shareholders who accept the offer will be paid within seven business days from the date of the receipt of their valid acceptances.
“The offeror intends to delist the company if, inter alia, the Free Float Requirement is not satisfied,” said the release.
Star Attraction explained that de-listing Wheelock Properties would provide it more flexibility to manage the company’s business, optimise the use of its management and capital resources as well as facilitate the implementation of any operational change.
Senior Content Producer, Christopher Chitty, edited this story