Sabana Reit gets partial takeover offer! My thoughts and analysis.
$SABANA SHARI'AH COMPLIANT REIT(M1GU.SI)$
SABANA Industrial Reit’s substantial shareholder Volare Group on Friday (Jan 20) launched a voluntary conditional offer to acquire an additional 10 per cent of Sabana units at S$0.465 per unit. The offer price represents a premium of 9.4 per cent over the volume-weighted average price on Jan 20.
Volare, which holds 5.4 per cent of issued units in Sabana, is a Switzerland-incorporated entity with various businesses. The group said it is launching the partial offer to diversify its business away from fossil fuels and build up its real estate portfolio
Retail Investors may even tender 100% holding successfully!
Even though this is a partial offer to acquire 10% stake from Sabana Reit unitholders, please take note that unitholders are allowed to tender in excess of their 10% stake.
In my opinion, there is a good chance you can even offload your full 100% stake if you really want it. Firstly, ESR group and its concert parties (who hold around 20% stake) are highly unlikely to tender any shares as they need to have certain stakes to retain control and function as the REIT manager. If my guess is correct, Quarz Capital, who holds around 11% of Sabana, is also unlikely to tender, even though they said publicly that the offer is "attractive". They previously wanted ESR REIT to acquired Sabana REIT at 60+ cents,so I dont think they will give in at this price so easily. So, if these 2 big unitholders give up their entited offers, retail unitholders' excess application is very likely to fulfill!
What game are the big boys playing!?
It is quite surprising that Volare are also "eyeing" Sabana REIT and Quarz Capital is so supportive of them!
It looks like a stalement for ESR group and the other activist investors. If Volare is succesful, ESR's merger plans will be even harder to pass through in the future. Likewise, if Quarz Capital and Volare wants to kick out ESR as the manager, it will be very hard as well.
Overall, I may not know what are these big boy's intention, but it does feel like some big corporate action is underway!
Modify on 2023-01-24 02:26
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