W Capital has declared DRC Investment’s offer to take Amara Holdingsprivate for 89.5 cents per share fair and reasonable, according to an Offeree Circular issued by the company on May 27.
W Capital, the independent financial advisor (IFA) for this deal, accordingly advises the recommending directors who are the directors of Amara Holdings, to advise shareholders to accept the offer.
On Apr 28, DRC Investments, which is an entity backed by several parties including the Teo family controlling Amara Holdings, offered 89.5 cents per share to take the property and hospitality firm private.
DRC Investments has already secured 90.58% of all Amara Holdings shares. The firm 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 HoldingsLimited 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.
W Capital Markets, the IFA, raised a new round of funds in January that brings its valuation to $42 million, from the $21 million according to its previous fund raising round in 2021.
Amara Holdings has lost its free float after shares in public hands fell below the mandatory level of 10% on May 15. DRC Investments received 16.9 million shares or 2.94% in valid acceptances of the offer. This brings its stake to a total of 525.3 million shares or a 91.36% stake.
Shares in Amara Holdings closed 1 cent higher or 1.124% up at 90 cents on May 27.
