Parent company garners 90.1% stake in Wheelock Properties at close of offer; starts delisting process

Parent company garners 90.1% stake in Wheelock Properties at close of offer; starts delisting process

By: 
Michelle Zhu
02/10/18, 11:08 pm

SINGAPORE (Oct 2): Wheelock and Company will proceed to delist Wheelock Properties (Singapore) from the Singapore Exchange following the successful conclusion of its $2.10 privatisation offer for the latter.

As at the close of voluntary unconditional general offer at 5.30pm on Tuesday, the total number of Wheelock shares owned by Wheelock and Company’s offer vehicle Star Attraction was 1.08 billion shares or 90.1% of the company’s total issued shares, which is above the 90% needed to be held by the offeror to take Wheelock Properties private.

As the 10% free-float requirement is no longer satisfied, trading of shares in the company has been suspended after the offer closed.

In an aftermarket filing on Tuesday, DBS Bank, on behalf of Star Attraction, says it will despatch a letter to non-assenting Wheelock shareholders to exercise their right to require Star Attraction to acquire their shares at the same offer price.

DBS Bank also says the offeror does not intend to take any step for the public float to be restored, or for the trading suspension of Wheelock’s shares to be lifted.

The date of Wheelock’s delisting has yet to be confirmed.

To recap, Star Attraction, offer vehicle for 76.21% owner of Wheelock and Company, launched the $2.10 offer in July with the initial close date of Sept 28 which was later extended to Oct 2.

PrimePartners Corporate Finance, the independent financial adviser (IFA) appointed by DBS Bank on behalf of Star Attraction, called the offer price of $2.10 “fair and reasonable, but not compelling” in its original 24 Aug recommendation. The IFA later on issued a clarification letter on 30 Aug revising its recommendation to “fair and reasonable” and dropping “but not compelling”.

Shares in Wheelock Properties closed at $2.10 on Tuesday before the announcement.

See: Is offer for Wheelock Properties fair and reasonable?

See also: Thinking about the future of property stocks as market awaits better offer for Wheelock

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