In a major development for Suntec Real Estate Investment Trust (Suntec REIT) unitholders, Aelios Pte. Ltd., with United Overseas Bank Limited (UOB) and DBS Bank Ltd. acting as joint financial advisers, has announced a mandatory conditional cash offer to acquire all issued and outstanding units of Suntec REIT not already owned or controlled by Aelios and its concert parties. The offer price has been set at an attractive S\$1.16 per unit. This development has the potential to influence Suntec REIT’s share price significantly.

This offer represents a key opportunity for unitholders to liquidate their holdings at a fixed and compelling valuation. The offer is conditional, and unitholders must act promptly, as the closing date for acceptance is scheduled for 5:30 PM on January 20, 2025, unless extended by the Offeror.

Key Details of the Offer

• Offer Price: Unitholders will receive S\$1.16 in cash for each Suntec REIT unit tendered. This price may be considered attractive depending on market conditions.
• Submission Deadline: The Form of Acceptance and Authorisation (FAA) must reach The Central Depository (CDP) by 5:30 PM on January 20, 2025.
• Submission Methods: Unitholders may submit their acceptance either electronically through the investors.sgx.com platform or by sending completed physical forms to CDP.
• Conditions of Acceptance: Only units standing in the “Free Balance” of a depositor’s Securities Account are eligible. Units with outstanding settlement instructions or purchased closer to the deadline may face rejection if settlement does not materialize in time.
• Payment: For valid and complete acceptances, payments will be credited directly to unitholders’ designated bank accounts within seven business days after the offer becomes unconditional.

Important Shareholder Considerations

Shareholders must assess the offer price of S\$1.16 per unit against the prevailing market conditions and intrinsic value of Suntec REIT. This price, if deemed favorable, could prompt a surge in acceptances, potentially impacting the share value in the short term. However, shareholders must also be mindful of the following:

• Irrevocability: Once submitted, acceptances are irrevocable unless the offer lapses or does not become unconditional.
• Impact of Rejection: Units tendered will be returned to the “Free Balance” of the depositor’s Securities Account within 14 days if the offer lapses.
• Overseas Unitholders: The offer’s availability may be restricted in certain jurisdictions. Overseas unitholders are advised to review the “Overseas Unitholders” section in the Offer Document.
• Deceased Account Holders: Special conditions apply for accounts where the account holder is deceased, requiring submission of legal documents such as the Grant of Probate or Letters of Administration.
• Units Purchased with CPF or SRS Funds: Acceptances must be routed through the respective CPF or SRS agent banks, bypassing CDP directly.

Potential Impact on Suntec REIT’s Share Price

The mandatory nature of the offer and the set price of S\$1.16 per unit could lead to heightened activity in Suntec REIT’s trading. If the offer price is perceived as undervalued, it may deter some unitholders from participating, potentially leading to volatility in the market. On the other hand, the liquidity event could attract institutional investors seeking to capitalize on the premium offered.

Investors should monitor any announcements related to the offer’s unconditional status, as this could trigger further price movements.

Actions Required from Unitholders

If you decide to accept the offer, ensure you complete the FAA accurately and submit it via the appropriate channels before the deadline. For those who choose not to participate, monitor the offer’s progress closely, as its outcome could significantly influence Suntec REIT’s future trajectory.