$Suntec Reit (T82U.SG)$ Lim & Tan recommend shareholders "No...
Lim & Tan recommend shareholders "Not to Accept" the offer.
The Business Times reported that property tycoon Gordon Tang and his wife Celine have made a mandatory conditional cash offer to acquire all the units of Suntec REIT at S$1.16 per unit in cash.
At its last traded price of $1.17, Suntec REIT is capitalized at $3.4 billion and trades at 0.6x price to book and 5.2% div yield. Bloomberg consensus 1 year target price of $1.24 implies a potential upside of 6%. They note that the mandatory general offer was made solely to comply with Rule 14.1 of the Take-over Code, and that the offer price of $1.16 is at a deep discount to its NAV of $2.07/share. The offer is also lower than the current share price of Suntec REIT by 1 cent.
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103044510 : Looking at current price of 1.23 ,definitely a NO Accept.
Munge : must make some news to push the price up
103179633 : Hope all retail investors are wise enough to NOT Accept the cash offer. It will benefit only the buyer who can buy a valuable asset at steep discount.
Munge : will they overrule other REITS holders the offer if they are the majority holder of this REITS?
FinanceCalculus : i guess all sg reits prices are suppressed because big players silently take profits
FinanceCalculus : how can the reits now drop to nov 2023 level when there is actually already 0.75% rate cut.
102905663 : Asked them to increase the offer price, too low liao
FinanceCalculus : i hold suntec shares through CLR etf. The retailers have not been buying up but let the price to drop. can’t blame the couple
FinanceCalculus : guess recent rise in banks are punishing reits
Bqwire 102905663 : By law, once you crossed the 30% holding, you need to make an offer.
So most likely it is just a formality, for show.
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