Mandatory Cash Offer: Aelios Pte. Ltd. Moves on Suntec REIT Units

Investors in Suntec Real Estate Investment Trust (Suntec REIT) should take note of a recent mandatory conditional cash offer (MGO) update that could influence unit prices. Oversea-Chinese Banking Corporation Limited (OCBC), acting as financial adviser to the Offeror Shareholders, has disclosed key dealings related to the MGO initiated by Aelios Pte. Ltd., with United Overseas Bank Limited and DBS Bank Ltd. as joint offerors.

Key Disclosure Details

• Transaction Date: 2 January 2025
• Dealing Entity: Bank of Singapore Limited (a subsidiary of OCBC)
• Transaction Type: Sale of 10,016 units of Suntec REIT under an existing derivative contract with a non-discretionary investment client not affiliated with the offeror or offeree company.
• Price per Unit: S\$1.2409
• Total Sale Amount: S\$12,428.85
• Post-Transaction Holdings: 22,542,455 units, representing approximately 0.77% of the total issued units of Suntec REIT (2,921,418,466 units).

Notably, the entities within the OCBC group holding exempt fund manager and exempt principal trader status, such as Bank of Singapore, are not considered to be acting in concert with the offeror (Aelios Pte. Ltd.) under the Singapore Code on Takeovers and Mergers. This exemption is outlined in the Practice Statement on the Exemption of Connected Fund Managers and Principal Traders.

Implications for Shareholders

While the sale of 10,016 units may appear minor relative to the total issued units of Suntec REIT, the disclosure is part of the mandatory reporting required under the MGO process. Shareholders should monitor further developments in the MGO, as changes in holdings by key entities could signal shifts in strategic positions or impact the unit price of Suntec REIT.

The declared price of S\$1.2409 per unit provides an indicative valuation benchmark for ongoing dealings, which may influence market perceptions of Suntec REIT’s valuation. Investors should also be aware that entities like OCBC and its subsidiaries, despite their significant holdings, are not considered to be in concert with the offeror, which may mitigate concerns of concentrated control.

What’s Next?

As the MGO progresses, shareholders are encouraged to stay informed about any further disclosures or developments that may materially affect Suntec REIT’s unit price. The next steps in the process and any additional dealings may provide more clarity on the intentions of key market participants.

For further details, shareholders can access the original Mandatory Cash Offer announcement dated 5 December 2024 on the Singapore Exchange (SGX) website.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research and consult with a qualified financial adviser before making any investment decisions.