Latest news with #DRCInvestments
Business Times
2 days ago
- Business
- Business Times
Consortium's privatisation offer for Amara closes with 97.74% valid acceptances
[SINGAPORE] The privatisation offer for hotel and property group Amara finally succeeded on Tuesday (Jun 10), with valid acceptances representing 97.74 per cent of the total shares. As at the close of the offer at 5.30 pm on Tuesday, the total number of shares owned, controlled or agreed to be acquired by DRC Investments, together with valid acceptances of the offer, amounted to 562 million shares. DRC, a consortium led by property developer Hwa Hong, will exercise its right to compulsorily acquire all remaining shares at the offer price of S$0.895 a share. Amara will subsequently be delisted from the Singapore Exchange. DRC said it has no intention to preserve the group's listing status and will instead make it a wholly owned subsidiary. DRC is a special-purpose vehicle that is 35 per cent held by a fund sponsored by formerly Singapore-listed Hwa Hong and Malaysia-based Newfields. Another 35 per cent shareholder is a wholly owned subsidiary of local developer Wing Tai. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Albert Teo, Amara's chairman and chief executive officer, and his daughter, chief operating officer Dawn Teo, hold the remaining 30 per cent of DRC. The S$0.895 offer price represents a 27 per cent premium over Amara's closing price of S$0.705 on Apr 23, ahead of the trading halt called by the company the following day. It is also a 33 per cent premium over Amara's net asset value per share as at end-December 2024. In a previous bourse filing, DRC cited low trading liquidity and challenging macroeconomic conditions for Amara's privatisation. This includes a rise in protectionist policies and shifting trade agreements, which could disrupt supply chains and increase costs for businesses. These may result in higher operations costs, squeezing profit margins and affecting long-term growth prospects, it said. 'The offer represents a unique cash exit opportunity for shareholders to liquidate and realise their entire investment at a premium, an option which may not otherwise be readily available due to the low trading liquidity of the shares,' it added. The latest privatisation offer was the second time Amara was the target of a privatisation deal. In 2023, the group received a voluntary cash offer at S$0.60 a share from Amethyst Assets, a consortium linked to Albert Teo, other members of his family and private equity investor Dymon Asia. But the attempt fell short of the 90 per cent threshold for acceptances, at 88.39 per cent in shareholding interest.
Business Times
15-05-2025
- Business
- Business Times
Amara loses free float, trading to be suspended
[SINGAPORE] The mandatory cash offer for hotel group Amara by a consortium led by property company Hwa Hong has turned unconditional. As at 6 pm on Thursday (May 15), the total number of shares owned, controlled or agreed to be acquired by the offeror together with valid acceptances of the offer amounted to 522,529,331 shares, or 90.88 per cent of the total number of shares of Amara. This means that Amara has lost its free float, as less than 10 per cent of the company's shares are now held by the public. The Singapore Exchange will suspend trading of Amara's shares at the close of the offer on Jun 10. The offeror, a special-purpose vehicle called DRC Investments, is able to privatise Amara at the offer price of S$0.895 per share which values the hotel group at about S$514.6 million. A fund sponsored by Hwa Hong and Malaysia-based Newfields holds a 35 per cent stake in DRC Investments. DRC Investments is also 30 per cent owned by Albertsons Capital, whose shareholders are Albert Teo, Amara's chairman and chief executive, and his daughter Dawn Teo, Amara's chief operating officer. Wing Tai's wholly owned subsidiary, Winteam Investment, also holds a 35 per cent stake in the consortium. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The offer represents a premium of 27 per cent over Amara's closing price of S$0.705 on Apr 23 before the company called for a trading halt the following day. The S$0.895 offer price also represents a 42.1 per cent, 44.8 per cent, 46.7 per cent and 48.9 per cent premium over Amara's volume-weighted average price for the one-month, three-month, six-month and 12-month periods up to and including the last traded day, respectively. The offeror intends to make Amara a wholly owned subsidiary, it said on Thursday. The low trading liquidity of Amara's shares was cited as one reason for the offer. The stock had an average trading volume of 21,201 shares over the 12-month period leading up to Apr 23. This represented 0.004 per cent of the company's total issued shares. DRC Investments said in April that Amara was facing a challenging macro and operating environment. The rise in protectionist policies and shifting trade agreements could disrupt supply chains and increase costs for businesses. 'These challenges may result in higher procurement expenses for the group's operations, squeezing profit margins and impacting long-term growth prospects,' it said. Shares of Amara closed flat at S$0.89 on Thursday before the announcement.
Business Times
07-05-2025
- Business
- Business Times
Amara appoints W Capital Markets as IFA for offer from Hwa Hong-led consortium
[SINGAPORE] Hotel group Amara on Wednesday (May 7) said it has appointed W Capital Markets as its independent financial adviser as it considers a voluntary conditional general offer from a consortium led by property company Hwa Hong. The IFA will advise Amara's directors who are considered independent for the offer. The adviser's opinion and the directors' recommendation will be sent to shareholders within 14 days from the issue date of the offer document. The offeror, a special-purpose vehicle called DRC Investments, launched the offer on Apr 28 at S$0.895 a share. The offer is final and values Amara at S$514.6 million. DRC Investments intends to privatise the hotel group, citing low trading liquidity and challenging macroeconomic conditions. The vehicle includes a 35 per cent stake held by a fund sponsored by Hwa Hong, formerly listed on the Singapore Exchange, and Malaysia-based Newfields. It is also 30 per cent owned by Albertsons Capital, with shareholders Albert Teo, Amara's chairman and chief executive, and his daughter Dawn Teo, Amara's chief operating officer. Real estate developer Wing Tai 's wholly owned subsidiary, Winteam Investment, holds a 35 per cent stake in the consortium. Amara's shares were flat at S$0.885 on Wednesday, before the announcement.
Straits Times
29-04-2025
- Business
- Straits Times
Amara shares surge 27% on privatisation offer
The S$0.895 offer represents a 33 per cent premium over Amara's net asset value per share as at end-December 2024. SINGAPORE - Shares of hotel group Amara soared shortly after the market opened on April 29, after news broke on Monday that it received a voluntary conditional general offer at S$0.895 apiece. The counter hit an intraday high of S$0.895 at 9.09 am on Tuesday as 172,400 shares changed hands – marking a rise of S$0.19 or 27 per cent from its latest closing price for Monday, when it finished unchanged at S$0.705 after news of the offer broke. This is the highest price it has reached in the year to date and marks a 57 per cent or S$0.325 increase from its closing price of S$0.57 for Dec 31, 2024, as shares of the group have been on a steady uptrend through the year. By 9.47 am, it eased down to S$0.885 – still up from Monday's close by S$0.18 or 25.5 per cent – with some 209,400 shares transacted. On Monday, Amara received a privatisation offer from a consortium led by property company Hwa Hong, which was formerly listed on the Singapore Exchange. The offeror, a special-purpose vehicle called DRC Investments, cited low trading liquidity and challenging macroeconomic conditions as the rationale behind its intent to privatise the company. DRC Investments is owned by three parties: Shorea HwaHong Newfields VCC, linked to Hwa Hong Corp and the Newfields Group, with 35 per cent; Winteam Investment, a wholly owned subsidiary of Wing Tai Holdings, with 35 per cent; and Albertsons Capital, controlled by Amara's chairman and chief executive Albert Teo and chief operating officer Dawn Teo, with 30 per cent. In a separate statement on Monday, Wing Tai, which is involved in property development, investment and retail, said the Amara Holdings investment will help it expand its core business, given the substantial overlap in both companies' operations. The S$0.895 offer represents a 33 per cent premium over Amara's net asset value per share as at end-December 2024. THE BUSINESS TIMES Additional information from The Straits Times Join ST's Telegram channel and get the latest breaking news delivered to you.
New Straits Times
28-04-2025
- Business
- New Straits Times
Consortium proposes RM2.29bil buyout of Singapore's Amara
KUALA LUMPUR: A consortium led by Singapore's Hwa Hong Corporation and Wing Tai Holdings Ltd, in partnership with Malaysia's Newfields, has proposed to acquire property and hospitality firm Amara Holdings Ltd for S$514.6 million (RM2.29 billion) The offer includes a cash payment of S$0.895 per share to Amara shareholders, representing a 27 per cent premium over the company's last traded price on April 23. The S$0.895 offer price also represents a 42.1 per cent, 44.8 per cent, 46.7 per cent and 48.9 per cent premium over Amara's volume-weighted average price for the one-month, three-month, six-month and 12-month periods, respectively. The special-purpose vehicle behind the offer, DRC Investments, has already secured approval from shareholders holding about 90.58 per cent of Amara's stake, according to Reuters. The shareholders of DRC Investments consist of Shorea HwaHong Newfields, a variable capital company (VCC) backed by Hwa Hong and the Newfields group of companies; Wing Tai's unit, Winteam Investment; and Albertsons Capital, whose shareholders are Albert Teo, Amara's chairman, executive director and chief executive officer (CEO), and Dawn Teo, Amara's chief operating officer. The three parties own 35 per cent, 30 per cent and 35 per cent, respectively, of DRC Investments. DRC Investments has stated that its offer price is final, with plans to take Amara private, citing low trading liquidity and challenging macroeconomic conditions. The offeror believes the offer provides an attractive cash exit opportunity for Amara's shareholders, offering a compelling premium and price certainty without the added costs of broking or trading fees. Hwa Hong and Newfields are both active investors in commercial real estate, while Wing Tai specialises in lifestyle retail and hospitality management. Amara operates a diverse portfolio of lifestyle properties, including hotels and speciality restaurants across Singapore, Thailand, and China.
