Consortium’s privatisation offer for Amara closes with 97.74% valid acceptances
The offeror, a consortium led by Hwa Hong, will compulsorily acquire all remaining shares and delist the company
[SINGAPORE] The privatisation offer for hotel and property group Amara finally succeeded on Tuesday (Jun 10), with valid acceptances representing 97.74 per cent of the total shares.
As at the close of the offer at 5.30 pm on Tuesday, the total number of shares owned, controlled or agreed to be acquired by DRC Investments, together with valid acceptances of the offer, amounted to 562 million shares.
DRC, a consortium led by property developer Hwa Hong, will exercise its right to compulsorily acquire all remaining shares at the offer price of S$0.895 a share.
Amara will subsequently be delisted from the Singapore Exchange.
DRC said it has no intention to preserve the group’s listing status and will instead make it a wholly owned subsidiary.
DRC is a special-purpose vehicle that is 35 per cent held by a fund sponsored by formerly Singapore-listed Hwa Hong and Malaysia-based Newfields. Another 35 per cent shareholder is a wholly owned subsidiary of local developer Wing Tai.
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Albert Teo, Amara’s chairman and chief executive officer, and his daughter, chief operating officer Dawn Teo, hold the remaining 30 per cent of DRC.
The S$0.895 offer price represents a 27 per cent premium over Amara’s closing price of S$0.705 on Apr 23, ahead of the trading halt called by the company the following day.
It is also a 33 per cent premium over Amara’s net asset value per share as at end-December 2024.
In a previous bourse filing, DRC cited low trading liquidity and challenging macroeconomic conditions for Amara’s privatisation.
This includes a rise in protectionist policies and shifting trade agreements, which could disrupt supply chains and increase costs for businesses. These may result in higher operations costs, squeezing profit margins and affecting long-term growth prospects, it said.
“The offer represents a unique cash exit opportunity for shareholders to liquidate and realise their entire investment at a premium, an option which may not otherwise be readily available due to the low trading liquidity of the shares,” it added.
The latest privatisation offer was the second time Amara was the target of a privatisation deal.
In 2023, the group received a voluntary cash offer at S$0.60 a share from Amethyst Assets, a consortium linked to Albert Teo, other members of his family and private equity investor Dymon Asia.
But the attempt fell short of the 90 per cent threshold for acceptances, at 88.39 per cent in shareholding interest.
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