Mandatory Cash Offer for Suntec REIT: Key Details for Investors

Aelios Pte. Ltd., a Singapore-based entity, has launched a mandatory conditional cash offer to acquire all issued and outstanding units of Suntec Real Estate Investment Trust (Suntec REIT). The offer, managed by United Overseas Bank Limited (UOB) and DBS Bank Ltd., seeks to purchase units not already owned, controlled, or agreed to be acquired by the Offeror and its concert parties. This development is in accordance with Rule 14 of the Singapore Code on Take-overs and Mergers and has the potential to significantly impact Suntec REIT’s share price.

Key Announcement Highlights

• The Offer Document, dated 23 December 2024, has been electronically disseminated to unitholders via the SGXNet.
• No printed copies of the Offer Document will be sent. Instead, Notification Letters and Acceptance Forms will be mailed to unitholders, providing instructions to access the electronic documents.
• The offer price for Suntec REIT units has not been disclosed in this announcement, but it is a critical factor investors will need to monitor closely.
• The offer is conditional, and its success depends on meeting certain pre-defined thresholds, as outlined in the Offer Document.

Important Deadlines

Unitholders must note the following deadlines:

• The Closing Date of the offer is set for 20 January 2025 at 5:30 PM (Singapore time), unless extended. Investors are advised to act promptly if they intend to accept the offer.
• Overseas unitholders experiencing restrictions in receiving documents may request copies to be sent to a Singapore address up to five market days before the offer closes.

Critical Information for Overseas Unitholders

The offer will be open to all unitholders, including overseas investors. However, those residing in jurisdictions with legal restrictions are advised to consult professional advisors to ensure compliance. Overseas unitholders may face additional obligations, such as taxes and duties, and must indemnify the Offeror and related parties for any liabilities incurred.

CPF and SRS Investors

Investors using CPF Investment Scheme (CPFIS) or Supplementary Retirement Scheme (SRS) will receive specific instructions from their respective agent banks. These investors must adhere to the deadlines stated in their bank communications to accept the offer. Upon successful acceptance, proceeds will be credited to their CPF or SRS investment accounts.

Independent Advice for Unitholders

Unitholders are encouraged to consider independent advice before taking action. The Independent Directors of the REIT Manager, along with an independent financial adviser, will release their views on the offer within 14 days of the Offer Document’s issuance. Investors are recommended to evaluate this advice carefully.

Potential Price Sensitivity

This mandatory offer signals significant corporate action concerning Suntec REIT. Investors should consider the potential implications on Suntec REIT’s valuation and share price. Key factors include the offer price, the REIT’s current performance, and the strategic intent of Aelios Pte. Ltd. in acquiring a greater stake.

Forward-Looking Statements and Risks

While the announcement contains forward-looking statements, these are subject to risks and uncertainties. Actual outcomes may differ significantly from expectations. Investors are advised not to place undue reliance on such statements and should monitor updates closely.

Contact Information

For inquiries, unitholders may contact:

• United Overseas Bank Limited: +65 6539 7066
• DBS Bank Ltd.: +65 6878 6347

Disclaimer

This article is intended for informational purposes only and does not constitute financial advice. Investors are advised to consult their stockbroker, bank manager, solicitor, accountant, tax adviser, or other professional adviser before making any investment decisions. The information presented here is based on publicly available sources and does not account for individual financial situations or risks.

View Suntec Reit Historical chart here