Suntec REIT: OCBC’s Strategic Move Could Influence Share Prices

OCBC Bank has made a significant disclosure regarding its dealings in Suntec Real Estate Investment Trust (REIT), which could potentially influence share prices. Acting as a financial adviser to the Offeror Shareholders, OCBC is involved in a mandatory conditional cash offer (MGO) by Aelios Pte. Ltd. for Suntec REIT units.

Key points from the report include:

• OCBC disclosed dealings under Rule 12 of the Singapore Code on Takeovers and Mergers on 20 December 2024, with the dealings dated 19 December 2024.
• The Bank of Singapore Limited, a subsidiary of OCBC, engaged in a derivative contract, specifically a de(accumulator), with a nominal amount of S\$370,817.36. This contract is linked to a non-discretionary investment client who holds existing units and an accumulator position, but is not connected with the offeror or offeree company.
• The derivative contract has a 12-month tenor expiring on 18 December 2025, with fixing dates every two weeks. It has a spot price of S\$1.18 per Unit, a strike price of S\$1.2409 per Unit, and a knockout price of S\$1.121 per Unit.
• Post-deal, the OCBC group holds 22,516,221 units, which translates to approximately 0.77% of the total units in issue, based on a total of 2,921,418,466 units.

Shareholders should note the potential sensitivity of these dealings. Given the nature of the transaction and the involvement of OCBC as a financial adviser, these dealings could influence market perceptions and potentially affect Suntec REIT’s share valuation.

This disclosure is issued by Oversea-Chinese Banking Corporation Limited.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Market participants should conduct their own due diligence before making investment decisions.