AGT says will commission valuer for offer from parent firm

ACCORDIA Golf Trust's (AGT) trustee-manager will commission a valuer to assess the value of AGT's golf courses and the golf courses' holding company, it said in response to queries from the Singapore Exchange (SGX) on Thursday.

SGX noted that the offer of 63.17 billion yen (S$783 million) from AGT's parent company, Accordia Golf Co, was lower than the net asset value of 65.53 billion yen indicated in AGT's results for the second quarter ended Sept 30, 2019. (see amendment note)

The trustee-manager reiterated that an independent financial adviser will be separately appointed and its recommendation to the audit committee will be disclosed to AGT unitholders in a circular that will be sent to them.

Accordia Golf Co, which has a controlling stake of 28.9 per cent in AGT, has offered to buy all 88 golf courses in AGT's portfolio in a non-binding proposal disclosed on Nov 28.

The offer works out to roughly S$0.71 per unit, assuming that the offer is all cash.

Units of AGT closed up S$0.015 or 2.2 per cent to S$0.685 on Thursday.

Amendment note: An earlier version of this article stated that AGT's parent had made a buyout offer. It is in fact an offer to buy the trust's assets.