Latest news with #SinarmasLand
Business Times
27-05-2025
- Business
- Business Times
Indonesia's Widjaja family's Sinarmas Land offer wins 90% acceptance, triggering compulsory acquisition
[SINGAPORE] Lyon Investments – controlled by the Widjaja family, one of Indonesia's wealthiest clans – has crossed the 90 per cent acceptance threshold in its offer for Singapore-listed Sinarmas Land. This triggers the right of compulsory acquisition of all the shares of shareholders who have not accepted the offer, paving the way for the delisting of the mainboard-listed property developer from the Singapore Exchange. In a regulatory filing on Monday (May 26), Lyon Investments announced it had secured valid acceptances for 1.14 billion shares, or 26.85 per cent, of Sinarmas Land's total share base. The offeror and its concert parties owned about 2.99 billion shares, or 70.3 per cent of the company, before the launch of the offer. This means that Lyon Investments has now secured over 90 per cent of the shares it did not already own before the offer – triggering the right of compulsory acquisition under the Companies Act. Lyon Investments now controls 97.14 per cent of Sinarmas Land. 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 offeror said it intends to exercise its right of compulsory acquisition at the revised offer price, and delist the company thereafter. The announcement comes after the investment entity declared on May 18 that its offer price of S$0.375 a share was final, following a 21 per cent increase of S$0.065 over the initial bid. On May 5, the Securities Investors Association (Singapore), also known as Sias, criticised the initial offer of S$0.31 a share as 'exploitative' . Sias said it had concerns about the manner in which the company's unlisted assets were valued. On May 16, Sinarmas released a letter which contained, among other things, the independent financial adviser W Capital Markets' opinion that on balance, the financial terms of the revised offer price are 'fair and reasonable'. As at 4 pm on Tuesday, shares of Sinarmas Land were trading 1.3 per cent or S$0.005 lower at S$0.37.
Business Times
18-05-2025
- Business
- Business Times
Offeror says Sinarmas Land offer price is final, extends offer period to Jun 2
[SINGAPORE] Lyon Investments said on Sunday (May 18) that its offer price of S$0.375 per share of Singapore-listed property developer Sinarmas Land is final, and that it does not intend to revise the current offer price. It will also extend the closing date of the offer from May 29 to Jun 2, 5.30pm. The announcement comes after it raised the offer price on May 10. The revised offer price represents an increase of 21 per cent or S$0.065 over the initial offer price, and is higher than the highest closing price of the company's shares for more than six years. Lyon Investments held about 70.3 per cent of the total number of issued shares in Sinarmas Land at the launch of the initial offer. As at May 16, it received valid acceptances of about 23.1 per cent of the total shares. This brings the offeror's total number of shares held to about 81.2 per cent. On May 5, the Securities Investors Association (Singapore), also known as Sias, criticised the initial offer as 'exploitative'. It had concerns about the manner in which the company's unlisted assets were valued. On May 16, mainboard-listed Sinarmas Land released a letter which contained, among other things, the independent financial adviser's (IFA), W Capital Markets, opinion that on balance, the financial terms of the revised offer price are 'fair and reasonable'. The offeror added on Sunday that it will apply to the Singapore Exchange (SGX) to obtain a waiver to comply with the voluntary delisting requirements in view of the revised opinion from the IFA and the valid acceptances of the offer it had received from shareholders. The offeror noted that SGX Regulation had clarified that it will consider waiving compliance from the voluntary delisting of an issuer if the offer is fair and reasonable, and the offerer has received acceptance from independent shareholders at least 75 per cent of the total number of issued shares held by independent shareholders. Shares of Sinarmas Land closed 1.3 per cent or S$0.005 lower at S$0.375 on Friday.
Business Times
14-05-2025
- Business
- Business Times
IFA's holding company discounts in offer based on study of 11 SGX-listed mid to large-cap conglomerates: Sinarmas Land
[SINGAPORE] Sinarmas Land defended the valuation methods used by the independent financial adviser (IFA) in the offer by Lyon Investments for shares in the company, in its response to queries by Singapore Exchange Regulation (SGX RegCo) on Tuesday (May 13). The company, after consulting the adviser W Capital Markets, said that the IFA had deemed the holding company discount applied to its unlisted assets to be within 'a reasonable range to adopt'. In its assessment of Lyon Investments' initial offer price of S$0.31 a share, W Capital Markets had noted that the offer was not fair but reasonable, based on its valuation of S$0.35 to S$0.361 per share. This valuation had applied a 20 to 22 per cent holding company discount to the company's unlisted assets. The market regulator on May 9 posed queries to the company on the IFA's decision to apply the holding company discount. While the regulator said that it had noted the adviser's rationale, it remained unclear how the figure of 20 to 22 per cent had been derived. In its response, Sinarmas Land said that the IFA's application of the discount was based on past cases of 11 SGX-listed mid to large-cap conglomerates, including other holding companies in the property sector. Comparing their closing share prices to target prices by research analysts based on sum-of-the-parts (SOTP) analysis, the IFA found that a median discount of 24 per cent and mean of 19.5 per cent were observed. When applied to conglomerates in the property sector, these figures were 24.1 per cent and 24 per cent, respectively. The IFA had therefore deemed the range of 20 to 22 per cent reasonable, Sinarmas Land said. 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 IFA had previously explained that holding company discounts are commonly applied to reflect the market perception of risks involved in owning a holding company. Corporate expenses, tax implications from dividends and investors' limited control over subsidiaries could also be the basis for such discounts, the IFA had said in response to criticisms. This claim was questioned by the regulator, who requested that the adviser provide examples to show that the application of such discounts by IFAs is a 'commonly accepted practice'. In response, the IFA noted that SOTP analyses in the voluntary delisting of Golden Energy and Resources in May 2023, and a scheme of arrangement of Japfa in March 2025 had both applied similar discounts, ranging from 10 to 25 per cent in the former, and 20 to 23 per cent in the latter. W Capital Markets also pointed to IFA statements in deals involving WBL Corporation, Keppel Telecommunications & Transportation and Singapore Press Holdings, all of which highlighted a sound basis for applying SOTP discounts to conglomerates. On Saturday, Sinarmas Land announced that the offeror had raised the offer price to S$0.375 a share. The revised offer price represents an increase of 21 per cent or S$0.065 over the initial offer price, and is higher than the highest closing price of the company's shares for more than six years. Shares of Sinarmas Land were trading 1.3 per cent or S$0.005 lower at S$0.375 as at 10.47 am on Wednesday.
Business Times
14-05-2025
- Business
- Business Times
IFA's holding company discounts are within reasonable range: Sinarmas Land
[SINGAPORE] Sinarmas Land defended the valuation methods used by the independent financial adviser (IFA) in the offer by Lyon Investments for shares in the company, in its response to queries by Singapore Exchange Regulation (SGX RegCo) on Tuesday (May 13). The company, after consulting the adviser W Capital Markets, said that the IFA had deemed the holding company discount applied to its unlisted assets to be within 'a reasonable range to adopt'. In its assessment of Lyon Investments' initial offer price of S$0.31 a share, W Capital Markets had noted that the offer was not fair but reasonable, based on its valuation of S$0.35 to S$0.361 per share. This valuation had applied a 20 to 22 per cent holding company discount to the company's unlisted assets. The market regulator on May 9 posed queries to the company on the IFA's decision to apply the holding company discount. While the regulator said that it had noted the adviser's rationale, it remained unclear how the figure of 20 to 22 per cent had been derived. In its response, Sinarmas Land said that the IFA's application of the discount was based on past cases of 11 SGX-listed mid to large-cap conglomerates, including other holding companies in the property sector. Comparing their closing share prices to target prices by research analysts based on sum-of-the-parts (SOTP) analysis, the IFA found that a median discount of 24 per cent and mean of 19.5 per cent were observed. When applied to conglomerates in the property sector, these figures were 24.1 per cent and 24 per cent, respectively. The IFA had therefore deemed the range of 20 to 22 per cent reasonable, Sinarmas Land said. 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 IFA had previously explained that holding company discounts are commonly applied to reflect the market perception of risks involved in owning a holding company. Corporate expenses, tax implications from dividends and investors' limited control over subsidiaries could also be the basis for such discounts, the IFA had said in response to criticisms. This claim was questioned by the regulator, who requested that the adviser provide examples to show that the application of such discounts by IFAs is a 'commonly accepted practice'. In response, the IFA noted that SOTP analyses in the voluntary delisting of Golden Energy and Resources in May 2023, and a scheme of arrangement of Japfa in March 2025 had both applied similar discounts, ranging from 10 to 25 per cent in the former, and 20 to 23 per cent in the latter. W Capital Markets also pointed to IFA statements in deals involving WBL Corporation, Keppel Telecommunications & Transportation and Singapore Press Holdings, all of which highlighted a sound basis for applying SOTP discounts to conglomerates. On Saturday, Sinarmas Land announced that the offeror had raised the offer price to S$0.375 a share. The revised offer price represents an increase of 21 per cent or S$0.065 over the initial offer price, and is higher than the highest closing price of the company's shares for more than six years. Shares of Sinarmas Land were trading 1.3 per cent or S$0.005 lower at S$0.375 as at 10.47 am on Wednesday.
Straits Times
13-05-2025
- Business
- Straits Times
Indonesia's Widjaja family raises offer for SGX-listed Sinarmas Land by 21%
The closing date of the revised offer has also been extended from May 14 to May 29. ST PHOTO: LIM YAOHUI SINGAPORE - Shares of Sinarmas Land jumped by around 19 per cent to 38 cents when the market opened on May 13, after the Widjaja family upped its offer to take the company private on May 10. Lyon Investments, which is controlled by the Widjajas, one of Indonesia's richest families, raised the price it is willing to pay for the remaining shares of Sinarmas Land by 21 per cent to 37.5 cents per share, or $1.6 billion in total, following criticism from minority shareholders that its original offer was too low. The closing date of the revised offer has also been extended from May 14 to May 29. Sinarmas Land is one of Indonesia's largest property developers and part of the Widjaja-owned Sinarmas conglomerate, which also controls Singapore-listed Golden Agri-Resources. As at May 9, Lyon Investments had already received acceptances from shareholders collectively holding 23.85 per cent of the shares in Sinarmas Land, giving it control over 94.15 per cent of the company. At those levels, Sinarmas Land's free float is now below 10 per cent, implying that trading of its shares may soon be suspended on the Singapore Exchange (SGX) to comply with listing rules. Lyon Investments first offered to take Sinarmas Land private on March 27 at 31 cents per share, or $1.32 billion in total, citing the low trading liquidity of the company's shares, among other things. No action is required from shareholders who accepted the original offer at 31 cents, as they will automatically receive the higher price. The revised deal follows an assessment by independent financial adviser (IFA) W Capital Markets, which deemed the offer 'not fair but reasonable' and valued each Sinarmas Land share between 35 and 36.1 cents. Current listing rules require any delisting offer to be both 'fair and reasonable' for it to go through, and be approved by 75 per cent of independent shareholders present at an extraordinary general meeting. According to the exchange regulator, an offer is 'fair' if the value of the offer price is greater than or equal to the value of the shares subject to the offer. Additionally, when considering whether an offer is 'reasonable', an IFA should give regard to matters including the concentration of pre-existing voting power in the shares of the issuer, the market liquidity of the shares, and the likelihood of an alternative offer being made. In a May 5 statement, the Securities Investors Association (Singapore), or Sias, noted that many minority shareholders had expressed unhappiness over the 31 cents per share offer for Sinarmas Land, which it said was widely seen as 'lowball'' and therefore 'exploitative'. Among other things, Sias noted that Sinarmas Land's net asset value per share as at Dec 31, 2024, was about 85 cents, implying the offer was pitched at a 63.6 per cent discount. It also questioned the methods used by the IFA to value the company's assets. In response, W Capital Markets said in a May 6 statement that its valuation methods were 'appropriate' and 'consistent with widely accepted industry practice'. The offer for Sinarmas Land also comes amid a spate of privatisation offers in 2025. So far, at least nine other companies have announced potential delistings this year . They are: SLB Development, PEC, Sin Heng Heavy Machinery , Econ Healthcare, Murata Manufacturing, ICP, Amara Holdings, Procurri Corp, and Ban Leong Technologies . The shareholders of two other companies, Japfa and Paragon Real Estate Investment Trust, have already accepted offers for the companies to be taken private and will be delisted. Join ST's Telegram channel and get the latest breaking news delivered to you.
