Aelios, a Singaporean investment holding company owned by billionaire Gordon Tang, has launched a $2.53 billion bid to acquire full ownership of Suntec Real Estate Investment Trust (REIT). The offer, announced Thursday, proposes a cash acquisition of Suntec REIT shares at an offer price of S$1.16 per share, aligning with the REIT’s last closing price on December 4.
The bid values Suntec REIT at approximately S$3.39 billion ($2.53 billion), and Aelios would need to spend an estimated $1.74 billion to purchase the remaining shares it does not already own. The move comes after Aelios increased its stake in Suntec REIT to 31.45% from 29.31%, by acquiring over 62 million shares, triggering a mandatory general offer for the remaining shares. Despite the offer, Aelios has stated its intention to maintain Suntec REIT’s listing on the Singapore stock exchange. Aelios further emphasized that it has the financial resources necessary to fully fund the offer, ensuring its ability to secure the deal if it receives full acceptance. The announcement of this acquisition bid comes at a time when Suntec REIT has seen a 4.9% decline in its share price for the year, according to LSEG data. United Overseas Bank and DBS are acting as joint financial advisors for Aelios in this transaction.
