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Vibrant addresses SGX-ST queries on Sabana disposal

VIBRANT Group on Friday night addressed queries from Singapore Exchange Securities Trading (SGX-ST) regarding its May 22 announcement that it was selling units in Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) and its stake in Sabana Investment Partners (SIP), which owns the Reit's manager.

Executed across three different sale and purchase agreements, the deal is worth S$62.2 million in net proceeds for Vibrant.

In response to SGX-ST's queries, Vibrant said on Friday that the aggregate consideration for the transactions was arrived at on a willing-buyer, willing-seller basis after arm's length negotiations.

The net asset value of the sale shares in SIP is S$4.28 million, based on the adjusted unaudited consolidated accounts of SIP for the third quarter ended 31 January 2019. The total consideration for that transaction is S$20.46 million for Vibrant's 51 per cent stake and an adjustment sum of about S$1.35 million, representing about 4.2 per cent of the total assets of Sabana Reit as at March 31, 2019.

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This is above the median value of 4.1 per cent of Singapore Reit managers' past precedent transactions that Vibrant has benchmarked, among other things, said the company. It added that it could not disclose precedent transaction values and/or ratios due to confidentiality obligations.

For the units in Sabana Reit, the consideration takes into account the closing price of 40.5 Singapore cents and 52-week high price of 44.5 Singapore cents for the full market day prior to the signing of the deal, said Vibrant. "No valuation has been commissioned as the sale units price at S$0.48 per unit is reasonably favourable," it added.

Both the sale shares and sale units transactions will be satisfied in cash.

Vibrant also disclosed that the excess of net proceeds over the book value of the transactions is about S$22.81 million.