In a circular to Sabana Industrial REIT’s unitholders dated Feb 24, the independent directors of Sabana REIT’s manager have recommended that unitholders accept Volare Group’s partial offer for 10% of Sabana REIT. The offer price is $0.465 in cash and the ex-distribution offer price will be $0.4504.
The offer price is at a premium above the historical volume weighted average price (VWAP) of the units over the last one-month, three-month, six-month, one-year, two-year, three-year and five-year periods prior and up to the partial offer announcement date. The premium ranges from 5.7% to 15.4% above the VWAP of the units.
After the partial offer announcement date and after the units had commenced trading on an ex-distribution basis, from Feb 6 onwards, the ex-distribution offer price represented a premum of 6% anpve the VWAP of the units.
The P/NAV ratio of implied by the offer price of 0.87x represents a premium of 11.5% above the historical average trading P/NAV ratio of 0.78x in the last five years, 4.8% above the historical average trading P/NAV ratio of 0.83 times in the last two-year period and 3.6% above the historical average trading P/NAV ratio of 0.84 times in the last one-year period prior and up to the partial offer.
The P/NAV of 0.87x based on the offer price is close to the average P/NAV ratio of 0.88x of AIMS APAC REIT and Daiwa House Logistics Trust.
Any comparison made serves only as an illustrative guide; the independent directors have confined their evaluation and assessment to the financial terms of the partial offer, and have not taken into account the commercial risks or commercial merits of the offer.
See also: Boustead Projects to be delisted after losing free float
Sabana REIT’s Feb 24 circular also says neither the Offeror and its concert parties have received any irrevocable undertaking from any holder of the offer units to accept or reject the partial offer.