Accordia Golf Trust urges unitholders to make informed vote on divestment

ACCORDIA Golf Trust (AGT), which owns 88 golf courses across Japan, on Tuesday urged its unitholders to carefully review its circular before deciding how they will vote for the proposed divestment.

This was in response to an open letter by the trust's largest minority unitholder, Hibiki Path Advisors, who said last Friday that the price offered by Accordia Golf is too low, as these assets generate "significantly attractive cash flow".

Hibiki Path Advisors, which has a 7.6 per cent stake in AGT, said it will vote against the proposed divestment unless the price is revised upwards, The Business Times reported.

On June 29, Accordia Golf, the sponsor of AGT, had proposed to acquire the trust's 88 golf courses in Japan for 61.8 billion Japanese yen (S$804.1 million), or an implied purchase consideration of S$0.732 per unit.

The proposed acquisition is conditional upon approval from AGT unitholders by Sept 14, at an extraordinary general meeting (EGM) that will be convened in due course.

The trustee-manager recognises and respects that it is the prerogative of all independent unitholders to vote on the proposed divestment as they deem fit, it said.

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However it added that the circular will contain more information for unitholders to make their decision, and advised unitholders to "carefully review the circular in its entirety". 

It will contain recommendations by the independent committee on the proposed divestment, the opinion of the independent financial adviser to the independent directors and the Audit and Risk Committee of the trustee-manager, the recommendation of the joint financial advisers to the independent committee, as well as the valuation summary letter and reports on the TK interests and golf courses. (TK stands for tokumei kumiai, which refer to anonymous partnerships.)

In preparing the circular, the trustee-manager will take into consideration queries and comments received on the proposed divestment, it said.

"Unitholders and investors are advised to refrain from taking any action in respect of their units which may be prejudicial to their interests, and to exercise caution when dealing in the units," it said.

AGT shares closed flat at S$0.69 on Tuesday.