SINGAPORE (Feb 3): Malaysia’s Amcorp Group has assumed control over TEE Land and is making an offer of 17.9 cents per share to buy over the remaining 31.22% of TEE Land in which it hasn’t already own.

This offer comes three weeks after the announcement that Amcorp plans to buy over a combined 68.78% stake in TEE Land from its parent TEE International and from Phua Chian Kin, TEE International’s controlling shareholder. 

Under Singapore market rules, shareholders are obliged to make a general offer for the remaining shares in a company if their stake crosses 30%. 

As part of the change in ownership, TEE Land CEO Jonathan Phua, and two non-executive directors, Edwin Neo, and Timothy Ong, will be resigning.  

Amcorp's offer of 17.9 cents is a premium of 9.1% over TEE Land’s Jan 8 price of 16.4 cents – the last trading day prior to the offer announcement. However, it is a 44% discount off TEE Land's net asset value of 31.9 cents as at Nov 30 2019. 

Amcorp has no intention to revise the offer price and it will keep TEE Land listed. The developer, which was spun off TEE International back in 2013, has a couple of existing projects in the pipeline, notably, 35 Gilstead. 

In a separate announcement, TEE International, the parent company, said it will buy over the group’s corporate headquarters building (picture) from TEE Land for a nominal amount of $1.

The building, 25 Bukit Batok Street 22, was appraised with a market value of $21.5 million by Jones Lang LaSalle Property Consultants on Nov 30 2019. It is now held under an entity called TEE Industrial, which is a wholly-owned unit of TEE Land.

However, there’s an outstanding mortgage of $15.78 million and TEE Industrial owes TEE Land another $9.23 million. This means TEE Industrial, the entity that owns the building, is in a negative net asset position of around $0.88 million.