SPH shareholders to decide about opting for cash in Cuscaden acquisition

WITH its offer to acquire Singapore Press Holdings (SPH) having been approved by shareholders of the mainboard-listed property player, Cuscaden Peak has started despatching to shareholders the forms for them to choose between getting all cash or a combination of cash and SPH Reit SK6U units.

In its regulatory filing furnished to the Singapore Exchange on Thursday (Apr 14), Hotel Properties Limited H15 (HPL) announced that the consortium it backed, Cuscaden Peak, requires SPH shareholders to submit the election forms by 5.30 pm on Apr 26 if they want to receive the S$2.36 in cash for each SPH share they hold.

Shareholders, however, need not state their preference if they want to receive a combination of S$1.602 cash and 0.782 SPH Reit units for every SPH share. The cash payment and units crediting are expected to be done latest by May 12.

The offeror noted that shareholders cannot make their election via the form if they hold SPH shares through a depository agent, the CPF Investment Scheme or Supplementary Retirement Scheme (SRS). Their depository agent, CPF agent bank or SRS agent bank would provide these shareholders with information on the election processes.

The court-sanctioned scheme, Cuscaden Peak said, is expected to take effect on Apr 29; SPH shares will be delisted on May 13.

Separately, Cuscaden Peak reminded unitholders of SPH Reit that it is entitled to reduce the minimum chain offer price of S$0.964 per unit by the amount of any distribution or return of capital declared on or after Nov 15, 2021.

Therefore, it has the right to lower the offer price of S$0.964 by S$0.0124 per unit that was declared as distribution on Feb 9 and paid to unitholders on Feb 28, and by a further S$0.0144 declared on Apr 1 and to be paid to unitholders on May 20 - if it ends up with at least 30 per cent of SPH Reit units as a result of SPH shareholders taking the all-cash option, requiring it to make a mandatory cash offer for SPH Reit.

If it intends to cut the minimum offer price, it said it will give an update in due course.

HPL closed one Singapore cent higher at S$3.55; SPH Reit units were flat at S$0.955 on Thursday, before these filings were made to the bourse.