Malaysian billionaire Robert Kuok has offered to acquire all the stocks in Allgreen Properties through a privatisation move that values the company at around S$2.54 billion.
Brookvale Investments, which is owned by members of the Kuok group of companies, offered S$1.60 per share in the Singapore-listed Allgreen. This is 39 percent higher than the stock’s last traded price of S$1.15, as well as 20 percent above Allgreen’s highest traded price in the past three years.
Brookvale said the Kuok group plans to make Allgreen a wholly owned unit and delist it, as shares of the company have declined 2.5 percent 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,” it said.
Brookvale added that Allgreen will continue its existing business activities and that there are no immediate plans to implement any major changes to its businesses.
Additionally, as of 9:01am today, Allgreen Property shares were traded at S$1.58, with more than 3.6 million shares changing hands.
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