Isetan (Singapore) Shares Double on Privatization Offer

Dow Jones04-02

By Amanda Lee

Shares of Isetan (Singapore) more than doubled after its Japanese owner unveiled plans to privatize the department store operator, ending its 43-year listing on the Singapore exchange.

Shares surged 148% to 7.03 Singapore dollars at midday in Singapore, after a privatization from its parent, Tokyo-listed department store group Isetan Mitsukoshi. The latter, which owns 53% of Isetan (Singapore), said Monday that it is offering S$140 million (US$103.5 million) to buy all the shares of the unit that it doesn't already own for S$7.20 each. It expects the deal to be completed in August.

The proposed price implies a 37% premium over the stock's highest closing market of S$5.24 in the past five years, noted analyst David Blennerhassett of Quiddity Advisors, who publishes on Smartkarma.

A "whopping" premium of 154% to its last close is partly due to the company's investment properties, said Blennerhassett. He noted that its stake of about 26% of Wisma Atria, a shopping complex, and an industrial property, was valued at S$26 million in Isetan (Singapore)'s end-2023 results.

But Blennerhassett says that results from Starhill Global REIT, which owns 74% of Wisma Atria, suggest that Isetan's stake in the complex could be worth about S$288 million for an upward revaluation gain of about S$6.30 per share.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

April 02, 2024 00:38 ET (04:38 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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