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Is it once surrender cannot take back and get paid ....
Alignment ( Date: 07-Jan-2024 20:35) Posted:
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The offer is unconditional.
Why no forumer interestes ?
ysh2006 ( Date: 06-Jan-2024 04:55) Posted:
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If by next week still cannot get 90 and above will they extend the closing day and return us the accepted shares ?
eddyeddy ( Date: 05-Jan-2024 20:29) Posted:
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Base on today SGX announcement , not easy for them to achieve 90% at all.
Worst come to worst when cross 90 % then we are forced to be " sold " , otherwise hold on to our shares , do not surrender to the bully
Game over now 88%....
Cadence88 ( Date: 02-Jan-2024 14:44) Posted:
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Closing date extends to 16 January 2024. So how ?
eddyeddy ( Date: 27-Dec-2023 23:21) Posted:
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They should I crease the offer price , 0.80 is fair to.minority shs .
Today at 84.92. Will it cross 90% when close 2/Jan? Or deadline will be extended? Not taking up the offer!
Hi Joel. Thanks. I have a clearer picture now.
Joelton ( Date: 01-Dec-2023 11:59) Posted:
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Amara, Boustead Projects minority investors need not fear saying &lsquo no&rsquo to offers
With depressed share prices, major shareholders will be tempted to take listed groups private.
CHRISTMAS may have come early for minority shareholders of Amara Holdings : A34 0% and Boustead Projects : AVM 0%.
Shareholders of both Mainboard-listed companies this month received offers for their shares that were above their last traded prices.
On the face of it, both offers appear to be reasonable. But small investors in both companies have good reasons to reject them.
The offeror for Amara Holdings &ndash a consortium linked to Albert Teo, the hotel group&rsquo s chief executive, other members of Teo&rsquo s family and private equity investor Dymon Asia &ndash unveiled its offer on Nov 14 with a final offer price of S$0.60 per share.
The offer price represents a premium of 54 per cent over Amara&rsquo s share price of S$0.39 on Jun 15, before the company announced that its key shareholders were in talks over a possible transaction, and 30 per cent over the last transacted price at S$0.46 before the offer announcement.
However, the offer price for Amara is at a discount of 10 per cent to net asset value (NAV) per share as at end-June of S$0.67.
Amara&rsquo s NAV could be conservative. While investment properties are held at fair value, hotels are held at historical cost less depreciation.
Amara&rsquo s hotel portfolio comprises its flagship Amara Singapore in Tanjong Pagar, Amara Sanctuary Resort Sentosa, Amara Signature Shanghai (China) and Amara Bangkok (Thailand). Might Dymon Asia hope to snare Amara&rsquo s hotels at a bargain and ride on possible growth in the hospitality sector?
Amid a firm outlook for hotels here, UOL Group : U14 -1.52% made a large exceptional gain from its recent sale of a hotel along Kitchener Road, near Little India.
As Amara&rsquo s minority shareholders consider the offer, some dissenting shareholders risk parting with their shares against their will.
The offeror aims to make Amara its wholly owned subsidiary and does not intend to preserve Amara&rsquo s listing status. If the offeror snags 90 per cent or more of total shares, it intends to use its right of compulsory acquisition to forcibly buy all the shares of shareholders who have not accepted the offer at the offer price.
In short, a minority shareholder may be forced to sell his shares for below what could be an understated book value.
Boustead Projects
In contrast, engineering services group Boustead Singapore : F9D 0%, could not avail itself of the power of compulsory acquisition, when it made a voluntary unconditional cash offer earlier this year for its real estate unit Boustead Projects.
When the offer for Boustead Projects at S$0.95 per share closed on Mar 27, the offeror and its concert parties held nearly 95.5 per cent of Boustead Project&rsquo s total outstanding shares. Trading of Boustead Projects&rsquo shares was suspended as it no longer had the minimum required public float of 10 per cent.
Boustead Projects&rsquo minority shareholders who did not accept the voluntary offer were left in limbo for some months.
However, these investors are vindicated with a sweeter deal. Boustead Singapore made an exit offer on Nov 14 of S$1.18 per share for Boustead Projects.
In the exit offer, Boustead Singapore can exercise the right of compulsory acquisition if it receives acceptances of 90 per cent or more, excluding those held by the offeror and its related parties.
PrimePartners Corporate Finance &ndash the independent financial adviser to Boustead Projects&rsquo recommending directors in relation to the exit offer &ndash has deemed the financial terms of the exit offer to be fair and reasonable.
Still, shareholders may wish to think hard over the S$1.18 per share offer as this is at the low end of PrimePartners&rsquo final valuation range for the shares of S$1.18 to S$1.42 per share.
If Boustead Projects&rsquo minority shareholders spurn the exit offer and their shares are not compulsorily acquired, they risk continuing to hold shares in a delisted entity. However, such a risk may be acceptable provided future prospects of the business are good.
Non-listed companies have fewer rules to comply with versus listed ones, and the level of disclosure of information is usually inferior to listed entities.
Still, there are regulations that protect the interests of minority shareholders of non-listed companies.
For example, assets of a company are to be used in the interest of all shareholders. Where non-listed companies pay dividends, minority investors receive a pro-rata share of the dividend.
Crucially, a major shareholder of a delisted entity has much skin in the game and is vested to ensure the entity succeeds. Such an entity may take a long-term focus and not take undue risks as the major shareholder loses much if things go awry.
Minority shareholders in an unlisted company which does well can receive higher dividends and see the entity&rsquo s book value grow. Also, a privatised group can be potentially restructured and sold to private equity investors, thereby enriching all its shareholders.
Liquidity concerns
Minority investors in non-listed companies may face greater difficulty selling their shares versus investors in listed entities. However, trading liquidity of many listed entities is poor and many listed groups trade at depressed valuations.
Precedents exist of controlling shareholders making attractive offers for delisted entities long after delisting.
After hotel-owning group Goodwood Park Hotel&rsquo s delisting in December 2004, an entity linked to family members of the late tycoon Khoo Teck Puat offered in 2016 to buy out minority shareholders at a premium to revalued NAV.
The offer price in 2016 of S$43 per share was over 3.6 times the net exit offer price of S$11.88 per share in 2004, excluding the company&rsquo s stake in Standard Chartered at the time.
Given many listed entities trade poorly, major shareholders will seriously consider privatisations. Retail investors need to carefully evaluate privatisation offers and their appetite for owning shares in an unlisted entity.
While minority investors need patience when holding shares in delisted entities, owning shares in non-listed groups need not be scary.
With many businesses held in the unlisted space, small investors should learn to be comfortable investing in this space.
Meanwhile, retail shareholders can push potential offerors to be more generous by rejecting underwhelming privatisation offers.
Vol so low. Should sell or otherwise🤔
Correction: is 1m shares bought at 60.5c
Thanks! 250k shares bought by others at 60c and 1m shares bought at 65c.
offeror got 1% today.
interest points, there are 2-3 other siblings e.g hin chuan, chew chuan and 2 niece and nephew (whose total shareholding is about 103m approx 18%) who are not in the offeror team or consortium, will they tender their shares like others like Morph Investments?
if they dont tender, amara will be listed, then there is chance for 2nd round offer like Dymon did with Challenger, Penguin, Hwa Hong after 6 months since they already said 60c is final price.
But whether can hit 500 shareholders is also another issue.
lets wait and see.
offeror got 1% today.
interest points, there are 2-3 other siblings e.g hin chuan, chew chuan and 2 niece and nephew (whose total shareholding is about 103m approx 18%) who are not in the offeror team or consortium, will they tender their shares like others like Morph Investments?
if they dont tender, amara will be listed, then there is chance for 2nd round offer like Dymon did with Challenger, Penguin, Hwa Hong after 6 months since they already said 60c is final price.
But whether can hit 500 shareholders is also another issue.
lets wait and see.
Congrats to all holders before trading halt. Easily 30% profit, which I think is a good deal. Remember, market is only willing to pay 30 plus cents before the announcement.
Teo family, Dymon Asia consortium launches bid to take Amara private at S$0.60 a share
AMARA Holdings : A34 0% on Tuesday (Nov 14) received a voluntary cash offer at S$0.60 per share from a consortium linked to Albert Teo, the hotel group&rsquo s chief executive, other members of his family and private equity investor Dymon Asia.
The offer price is final and represents a premium of 53.8 per cent over Amara&rsquo s share price of S$0.39 on Jun 15, before the company announced that its key shareholders were in talks over a possible transaction. Amara most recently transacted at S$0.46 before a trading halt was called on Nov 10.
The S$0.60 offer price also represents a 70.5 per cent premium over Amara&rsquo s volume weighted average price for the one month up to Jun 15, and a 75.4 per cent premium over the three-month period.
The offeror, a special-purpose vehicle called Amethyst Assets, intends to privatise Amara, it said in a Tuesday bourse filing, citing a challenging growth environment and low trading liquidity.
Amethyst is 36.2 per cent-owned by First Security Pte Ltd (FSPL), a company in turn owned by Albert Teo and his siblings Susan Teo and Teo Kwee Chuan &ndash who are Amara&rsquo s executive director and property division director respectively.
Concordia United, an investment vehicle under Dymon Asia Private Equity, holds another 30.3 per cent stake in Amethyst.
Other shareholders of the offeror include Albertsons Capital &ndash jointly owned by Albert Teo and his daughter Teo Shao-Lynn, Dawn &ndash and Corinne Teo, another sibling of the chief executive who is the group&rsquo s quality and systems manager.
Reasons for offer
Low trading liquidity of Amara&rsquo s shares was cited as one reason for the offer. The stock has had an average trading volume of 31,473 shares over the 12-month period leading up to Jun 15. This represented less than 0.02 per cent of the company&rsquo s total issued shares.
&ldquo The offer provides shareholders with an opportunity to liquidate and realise their investment in the shares at a premium over the historical traded prices&hellip which may otherwise not be available, given the low trading liquidity,&rdquo the offeror said in Tuesday&rsquo s filing.
It added that this was a &ldquo clean cash exit opportunity&rdquo without brokerage and other trading costs.
Amethyst further cited the challenging growth outlook that Amara faces. The higher-for-longer interest rate environment has raised borrowing costs, impacting profitability. Amara Singapore, the group&rsquo s flagship hotel, commenced operations in 1986 and needs to renew its aged assets to stay competitive.
&ldquo The requisite capital expenditure requirements from such a renewal amid higher costs of capital could potentially limit profitability in the near term,&rdquo the offeror said.
The offer will be funded by a combination of interest-free loans and a bank loan.
Last year this was the headline
luckyguy3 ( Date: 14-Nov-2023 17:28) Posted:
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will this offer spurs interest in other Hospitality related stock? Today genting up 9 cents..
Wonder CDL Htrust, Fraser Htrust and Far East Htrust will see interest or not?
Usually this type of news will spur interests in other Hotel/Hospitality related counters
Wonder CDL Htrust, Fraser Htrust and Far East Htrust will see interest or not?
Usually this type of news will spur interests in other Hotel/Hospitality related counters
haha cannot even offer NAV of 67c where Amara Hotels are valued at Historical Costs. RNAV is likely $1 and above. Give 30% discount, should offer 70c and above.
with such offer format, of unconditional and final price offer, i think not many people will tender their shares.
So the TEOs did not sell out but take part 70% of the Consortium with Dymon Asia 30% who tried to buy Penguin, Creative, etc before.
so you know the price will not be nice, although it did hit the top end of my predictions.
i believe 2nd round after a few years will be $0.70 offer price.
with such offer format, of unconditional and final price offer, i think not many people will tender their shares.
So the TEOs did not sell out but take part 70% of the Consortium with Dymon Asia 30% who tried to buy Penguin, Creative, etc before.
so you know the price will not be nice, although it did hit the top end of my predictions.
i believe 2nd round after a few years will be $0.70 offer price.