[SINGAPORE] Hotel group Amara and technology products distributor Ban Leong Technologies on Wednesday (May 7) separately announced that they have appointed independent financial advisers (IFAs) as they mull offers to be taken private.
Amara has appointed W Capital Markets as its IFA for a voluntary conditional general offer from a consortium led by property company Hwa Hong.
The offeror, a special-purpose vehicle called DRC Investments, launched the offer on Apr 28 at S$0.895 a share. The offer is final and values Amara at S$514.6 million.
DRC Investments intends to privatise the hotel group, citing low trading liquidity and challenging macroeconomic conditions. The vehicle includes a 35 per cent stake held by a fund sponsored by Hwa Hong, formerly listed on the Singapore Exchange, and Malaysia-based Newfields. It is also 30 per cent owned by Albertsons Capital, with shareholders Albert Teo, Amara’s chairman and chief executive, and his daughter Dawn Teo, Amara’s chief operating officer.
Real estate developer Wing Tai’s wholly owned subsidiary, Winteam Investment, holds a 35 per cent stake in the consortium.
Meanwhile, Ban Leong has chosen Asian Corporate Advisors as its IFA as it considers a cash offer from video game distributor Epicsoft Asia, an indirect wholly owned subsidiary of Nasdaq-listed GCL Global.
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The offer of S$0.6029 per share to Ban Leong’s shareholders comes as GCL Global “seeks to integrate Ban Leong’s distribution and vendor network with GCL Global’s digital capabilities and software portfolio”, the latter’s chief executive Sebastian Toke told The Business Times in a recent interview.
If Epicsoft Asia scoops up at least 90 per cent of Ban Leong shares at the close of the offer, it said that it will exercise its rights to compulsorily acquire the remaining shares from shareholders who have not accepted the offer.
These IFA will advise Amara and Ban Leong’s directors, who are considered independent, for their respective offers. The advisers’ opinion and the directors’ recommendation will be sent to each group’s shareholders within 14 days from the issue date of the offer document.
Amara’s shares were flat at S$0.885 on Wednesday, before the announcement. Ban Leong shares added S$0.005 or 0.8 per cent to close at S$0.595 on Wednesday.
