Suntec REIT Shareholders Alert: Aelios Pte. Ltd.’s Mandatory Cash Offer Shakes Market
In a significant market development, Aelios Pte. Ltd. has made a mandatory conditional cash offer to acquire all issued and outstanding units of Suntec Real Estate Investment Trust (Suntec REIT), excluding those already held by the Offeror and its Concert Parties. This move, announced by United Overseas Bank Limited and DBS Bank Ltd., is in compliance with Rule 14 of the Singapore Code on Take-overs and Mergers, triggered by Aelios’ recent acquisition activity.
Key Acquisition Details
On December 5, 2024, Aelios Pte. Ltd. acquired 62,541,700 units at S\$1.16 per unit, raising its stake to 31.45% of the total issued units in Suntec REIT. This acquisition surpasses the 30% threshold, necessitating a mandatory general offer for the remaining units.
Offer Terms and Conditions
The offer price is set at S\$1.16 per unit, matching the highest price paid by Aelios over the past six months. The offer units will be acquired fully paid and free from any encumbrances, with all rights, benefits, and entitlements attached as of the announcement date.
Potential Impact on Shareholding
The offer is conditional upon Aelios and its concert parties holding more than 50% of the total voting rights of the issued units. Currently, their aggregate holding stands at 31.45%. If they achieve more than 90% acceptance, trading of Suntec REIT units may be suspended by the SGX-ST.
Strategic Intentions and Listing Status
Aelios intends to maintain Suntec REIT’s listing status on the SGX-ST. However, if public shareholding falls below 10%, SGX-ST may suspend trading, and the REIT could be delisted if the free float requirement is not restored within three months.
Financial Assurance
The Joint Financial Advisers, United Overseas Bank Limited and DBS Bank Ltd., have confirmed that Aelios has sufficient financial resources to meet full acceptance of the offer.
Shareholder Considerations
Shareholders are advised to consider the implications of the offer carefully, as it could significantly impact share values and the strategic direction of Suntec REIT. The offer document with full terms and conditions will be disseminated within 14 to 21 days from the announcement date.
Disclaimer
This article is for informational purposes only and should not be construed as financial advice. Shareholders should seek independent advice before making any investment decisions.
