Singapore-based investment firm Aclico plans to acquire additional shares in Suntec REIT, valuing the trust at SGD 5.39 billion (USD 2.53 billion) with a per-share offer of SGD 1.16. Following its recent purchase of a 2.14% stake, increasing its ownership to 34.3%, Aclico breached the 30% threshold, triggering a mandatory general offer for remaining shares, requiring SGD 1.74 billion. The firm intends to retain Suntec REIT's Singapore Exchange listing, ensuring investor accessibility. With United Overseas Bank and DBS as advisors, Aclico aims to strengthen its position in real estate investment despite Suntec's year-to-date 4% share price decline.
Aclico, a Singapore-based investment firm, has made a significant announcement regarding its plans to acquire additional shares in Suntec Real Estate Investment Trust (REIT). This move values the REIT at approximately SGD 5.39 billion (USD 2.53 billion), with a per-share offer price of SGD 1.16 in cash. The offer is aimed at increasing Aclico's stake in Suntec, further strengthening its position in the real estate investment sector.
The company estimates that it will require an investment of SGD 1.74 billion to acquire the remaining shares of Suntec REIT, based on the latest calculations. This offer follows Aclico's acquisition of over 62 million shares, equating to approximately 2.14% of the REIT, which took place earlier this month. This transaction raised Aclico's ownership stake to 34.3%, up from 29.31%. As this breached the 30% ownership threshold, regulatory requirements necessitated a mandatory general offer to acquire all outstanding shares of the REIT.
Aclico has confirmed that the offer price is consistent with the closing price of Suntec REIT shares earlier in the week. In a statement, the company expressed its intention to retain Suntec REIT's listing on the Singapore Exchange, ensuring the trust remains publicly traded and accessible to current and potential investors. Furthermore, Aclico has assured stakeholders of its financial capability to support full acceptance of the offer, thereby bolstering confidence in its strategic plans.
The firm has enlisted United Overseas Bank and DBS as joint financial advisors for this transaction, reflecting its commitment to executing this deal with precision and professional oversight. Despite this development, Suntec REIT shares have experienced a 4% decline in value year-to-date, according to data from the London Stock Exchange Group (LSEG). This trend highlights a challenging year for the REIT, although Aclico's offer may signal renewed interest and potential future growth opportunities.
Aclico's strategic move to increase its stake in Suntec REIT underscores its confidence in the trust's long-term value. The company's commitment to retaining Suntec's listing on the Singapore Exchange reflects its intention to maintain investor confidence. With support from prominent financial advisors and sufficient resources to complete the offer, Aclico is well-positioned to strengthen its foothold in the real estate investment sector. Despite a year-to-date decline in Suntec REIT's share price, the offer could signify positive prospects for stakeholders.
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