SINGAPORE (Aug 24): The $2.10 offer for Wheelock Properties (Singapore) by its controlling shareholder is “fair and reasonable, but not compelling, and are not prejudicial to the interests of minority shareholders”, says the Independent Financial Adviser (IFA).

See: Controlling shareholder of Wheelock Properties launches $2.10 per share offer

PrimePartners Corporate Finance, the IFA appointed by DBS Bank on behalf of offeror Star Attraction, the offer vehicle for Wheelock and Company, the HK-listed 76.21% owner of Wheelock Properties, advises the property developer’s directors “to recommend that shareholders accept the offer, unless shareholders are able to obtain a price higher than the offer price on the open market, taking into account all brokerage commissions or transactions costs in connection with open market transactions”.

On Friday, Wheelock Properties shares closed at $2.22.

Star Attraction on July 19 launched its offer which values Wheelock Properties at over $2.5 billion. The offeror intends to delist the company if the 10% free float requirement is not satisfied. Shares in Wheelock last traded at $1.74 on July 13 when a halt was called for the announcement.

DBS says the offer price represents a premium of 29% and 22.8% over the one-month and three-month VWAPs, offering an opportunity for shareholders to exit their entire investment in the company, which may otherwise be difficult due to the low trading liquidity of the shares.

See: Lim & Tan recommends Wheelock shareholders hold out for better offer; shares up 26%