In a notable development under the ongoing Mandatory Conditional Cash Offer (MGO) for Suntec Real Estate Investment Trust (Suntec REIT), Oversea-Chinese Banking Corporation Limited (OCBC) has disclosed a significant trading activity. The disclosure, made on January 8, 2025, under Rule 12 of the Singapore Code on Takeovers and Mergers, reveals the acquisition of Suntec REIT units by Bank of Singapore Limited, a subsidiary of OCBC.

Key Details of the Trading Activity

• Date of Transaction: January 8, 2025
• Volume of Units Acquired: 55,250 units
• Price per Unit: S\$1.1824
• Total Transaction Value: S\$65,327.60
• Resultant Total Holdings: 22,574,705 units
• Resultant Percentage of Total Units: Approximately 0.77%

As per the disclosure, the trading entity, Bank of Singapore Limited, acted as an exempt principal trader under the OCBC group. The acquisition was pursuant to the terms of an existing derivative contract with a non-discretionary investment client holding prior positions in Suntec REIT units. Importantly, the client is not connected with either the offeror or the offeree company, mitigating concerns of potential conflicts of interest.

Implications for Shareholders

This disclosure could have implications for Suntec REIT unit holders and the broader market. The acquisition by OCBC’s subsidiary, albeit relatively small in percentage terms, highlights institutional interest in the REIT amid the ongoing MGO. Shareholders should note that OCBC group entities, acting as exempt fund managers and principal traders, are not regarded as acting in concert with the offeror, Aelios Pte. Ltd., as per the Practice Statement on Exempt Status.

With Suntec REIT currently having 2,921,418,466 units in issue, this trading activity, while modest in scale, underscores the heightened market activity surrounding the MGO announced on December 5, 2024. Any further disclosures or transactions could potentially impact the unit price, and shareholders are advised to monitor developments closely.