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Unitholders should accept Blackstone's bid for Croesus, says independent adviser CIMB
AN independent financial adviser has found Blackstone's S$1.17 per unit cash offer to privatise Croesus Retail Trust to be "fair and reasonable", and recommends that holders vote in favour of the bid at a scheme meeting.
In its report, CIMB said that although the Japan-based shopping mall trust's market price was at a premium to the offer price, the premium was partly a reflection of expectations about the trust's permitted distributions. The offer price represents a premium of 24.5 per cent to 37.7 per cent over the various volume-weighted average trading prices from listing until June 23, 2017, the last full day of trading before the bid was announced, CIMB said.
The offer is also a 19.9 per cent premium to net asset value adjusted for current market prices, and the implied price to net asset value by the offer price is about 1.15 times, which is above the historical mean and median for foreign retail trusts, CIMB said.
Unitholders will vote on the proposed scheme of arrangement on Sept 13. The scheme must be approved by a majority of unitholders present at the meeting whose combined stake is at least 75 per cent of the units held by unitholders present. If rejected, the offer will not be available to any unitholder.
The Securities Investors Association (Singapore) is conducting a dialogue session for management of Croesus and unitholders on Aug 30 to discuss the offer and answer questions.