Isetan calls for trading halt; shares soar 9.6% on news SGReit to buy over its Wisma Atria stake

JAPANESE department store operator Isetan Singapore on Tuesday afternoon requested a trading halt, pending the release of an announcement. This comes after its shares shot up by almost 10 per cent on the back of news that YTL Starhill Global Reit (SGReit) has made an offer to acquire Isetan Singapore's share of Wisma Atria, according to a source. 

As at 1.10pm, Isetan shares were trading at S$5.24, up 9.6 per cent, or 46 Singapore cents - surpassing its 52-week high of S$4.80. 

BT understands that SGReit's manager, part of the YTL Group controlled by Malaysian tycoon Francis Yeoh, issued a letter of intent to Isetan more than a month ago to open talks on acquiring the Japanese firm's share in the shopping mall.

As it stands, SGReit owns about 74 per cent of the Wisma Atria property's total share value of strata lots, with the remaining owned by Isetan Singapore.

It is also believed that, to close is grip on the property, YTL Starhill Global Reit Management has signalled that it is prepared to offer more than S$290.7 million - the fair value of Isetan's investment stake in Wisma Atria as at the end of 2018, as determined by an independent valuer.