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PR Newswire
24-05-2011, 06:59 AM
Business Times - 24 May 2011
Kuok group seeking to take Allgreen private
Offer of $1.60 a share, valuing Allgreen at $2.45 billion
By UMA SHANKARI
MALAYSIAN billionaire Robert Kuok has offered to buy all shares in his Singapore property arm Allgreen Properties, in a privatisation move that values the company at $2.54 billion.
Brookvale Investments, owned by members of the Kuok group of companies, offered $1.60 for each share in Singapore-listed Allgreen, the developer said yesterday.
This is 39 per cent above the stock's last traded price of $1.15 on Friday last week, and also around 20 per cent above Allgreen's highest traded price in the past three years. Allgreen shares were suspended from trading yesterday.
Firms linked to the Kuok family that together hold 55.58 per cent of Allgreen have already agreed to sell their shares to Brookvale. Brookvale currently does not own any Allgreen shares, but two majority shareholders of Allgreen also own stakes in Brookvale. It is not clear how much it would cost for the Kuok group to take Allgreen private because of the complex shareholding.
The voluntary conditional cash offer will require that Brookvale receives acceptances for at least 75 per cent of the voting rights in the company.
The Kuok group aims to make Allgreen a wholly owned subsidiary and delist it, Brookvale said. Allgreen shares have declined 2.5 per cent so far this year.
'The offeror believes that the privatisation of Allgreen will provide Allgreen with the necessary management flexibility to explore alternative opportunities for Allgreen's growth . . . without the attendant costs (including time and opportunity cost), regulations and regulatory restrictions and compliance issues associated with its listed status,' said Brookvale in a statement.
Allgreen will continue its existing business activities, Brookvale said. It added that there are at present no plans to introduce any major changes to Allgreen's businesses or re-deploy its fixed assets.
The Kuok family owns several large businesses across Asia, including Singapore-listed Wilmar International and Hong Kong-listed Kerry Properties and Shangri-La Asia.
(Not Vested)
Kuok group seeking to take Allgreen private
Offer of $1.60 a share, valuing Allgreen at $2.45 billion
By UMA SHANKARI
MALAYSIAN billionaire Robert Kuok has offered to buy all shares in his Singapore property arm Allgreen Properties, in a privatisation move that values the company at $2.54 billion.
Brookvale Investments, owned by members of the Kuok group of companies, offered $1.60 for each share in Singapore-listed Allgreen, the developer said yesterday.
This is 39 per cent above the stock's last traded price of $1.15 on Friday last week, and also around 20 per cent above Allgreen's highest traded price in the past three years. Allgreen shares were suspended from trading yesterday.
Firms linked to the Kuok family that together hold 55.58 per cent of Allgreen have already agreed to sell their shares to Brookvale. Brookvale currently does not own any Allgreen shares, but two majority shareholders of Allgreen also own stakes in Brookvale. It is not clear how much it would cost for the Kuok group to take Allgreen private because of the complex shareholding.
The voluntary conditional cash offer will require that Brookvale receives acceptances for at least 75 per cent of the voting rights in the company.
The Kuok group aims to make Allgreen a wholly owned subsidiary and delist it, Brookvale said. Allgreen shares have declined 2.5 per cent so far this year.
'The offeror believes that the privatisation of Allgreen will provide Allgreen with the necessary management flexibility to explore alternative opportunities for Allgreen's growth . . . without the attendant costs (including time and opportunity cost), regulations and regulatory restrictions and compliance issues associated with its listed status,' said Brookvale in a statement.
Allgreen will continue its existing business activities, Brookvale said. It added that there are at present no plans to introduce any major changes to Allgreen's businesses or re-deploy its fixed assets.
The Kuok family owns several large businesses across Asia, including Singapore-listed Wilmar International and Hong Kong-listed Kerry Properties and Shangri-La Asia.
(Not Vested)
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