Chain offer expected as Cuscaden and concert parties to own 47% of SPH Reit units

CUSCADEN Peak and its concert parties behind the takeover of Singapore Press Holdings (SPH) are expected to make a chain offer for SPH Reit.

Cuscaden – a consortium backed by Hotel Properties (HPL), businessman Ong Beng Seng and 2 Temasek-linked entities CLA and Mapletree – had offered each SPH shareholder the option of an all-cash offer of S$2.36, or S$2.40 per share comprising S$1.602 cash and 0.782 of an SPH Reit unit through a distribution-in-specie by SPH.

Shareholders holding some 680.6 million SPH shares have elected to receive the cash and units consideration, while shareholders of another 936.4 million SPH shares chose to receive the all-cash consideration.

As a result of the election, nearly 732.3 million SPH Reit units – representing about 26.1 per cent of the total number of issued and outstanding SPH Reit units – will be transferred to Cuscaden.

Including SPH Reit units held by SPH after the completion of the distribution-in-specie, Cuscaden and its concert parties will own around 47.2 per cent of the total issued SPH Reit units.

The mandatory general offer for SPH Reit will be triggered as Cuscaden and its concert partes will own more than 30 per cent of SPH Reit.

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Cuscaden said it expects to announce its intention to make the SPH Reit chain offer on the effective date.

The legal transfer of the SPH Reit units is expected to take place on May 12.