An entity backed by multiple parties including Hwa Hong Corp, Wing Tai Holdingsand the Teo family controlling Amara Holdingsis offering 89.5 cents per share to take over the property and hospitality firm at $514.6 million.
The vehicle used is called DRC Investments, which is held by a group of investors and which has already secured 90.58% of all Amara Holdings shares.
Eugene Teo, CEO and co-founder of Shorea Capital, which owns Shorea Advisors, the manager of Shorea Hwa Hong Newfields variable capital company (VCC), says this is an opportunity for Amara Holdings shareholders to realise their investment at an attractive price and premium over the historical traded share prices.
"At a 27% premium over Amara's last traded price, we believe it is a compelling offer, especially in the face of macroeconomic uncertainties and the low trading liquidity of Amara's Shares," he adds.
The shareholders of DRC Investments, the vehicle, consists of Shorea HwaHong Newfields, a VCC backed by Hwa Hong Corporation and the Newfields group of companies; Winteam Investment, a unit of Wing Tai Holdings Limited and Albertsons Capital, whose shareholders are Albert Teo, Amara's chairman, executive director and CEO, and Dawn Teo, Amara's chief operating officer. The three parties own 35%; 35% and 30% respectively of DRC Investments.
The offerors do not intend to revise their offer price, which is at a 33% premium over Amara's net asset value per share of 67.3 cents.
See also: Procurri Corp's parent company seeking to take company private at 32 cents per share
Amara Holdings has been listed since 1997 and since then, has not tapped the equity market for additional capital.
UOB has been appointed the financial adviser for this deal.
