Buyout attempt of Tokyo-listed sponsor unlikely to affect Accordia Golf Trust

SINGAPORE-LISTED Accordia Golf Trust said on Wednesday an offer for all the shares of its Tokyo-listed sponsor, Accordia Golf Co, is not expected to materially affect the trust's business, as the "Accordia Golf" brand remains popular and widely recognised in Japan.

The offeror, K.K. MBKP Resort, is a stock company owned by Midori Development Company, an investment firm indirectly owned by MBK Partners Fund III.

MBK Partners Group is an independent private equity firm that specialises in the North Asia region, with investment assets of about US$14.5 billion.

The offeror has managed to get the major shareholders, representing an ownership of 22.77 per cent, to accept the tender offer for their shares.

The purchase period will be 30 business days from Nov 30, 2016, to Jan 18, 2017.

The trust said: "The sponsor has expressed that as long as it remains a listed company, it may not be able to implement its asset-light strategy (the value chain of acquisition, value adding, and sale of golf courses) promptly, and apply its cash flows towards the acquisition of new golf courses and driving ranges as well as to growth capital such as capital expenditure to improve services and new acquisitions, as opposed to applying its cash flows to the allocation of returns to shareholders.

"The board of directors of the sponsor was unanimously of the opinion that the tender offer would be the best option for the sponsor from the perspectives of improving its corporate value and business strategy."