The S$0.895 offer represents a 33% premium over the company’s net asset value per share as at end-December 2024
[SINGAPORE] Shares of hotel group Amara soared shortly after the market opened on Tuesday (Apr 29), after news broke on Monday that it received a voluntary conditional general offer at S$0.895 apiece.
The counter hit an intraday high of S$0.895 at 9.09 am on Tuesday as 172,400 shares changed hands – marking a rise of S$0.19 or 27 per cent from its latest closing price for Monday, when it finished unchanged at S$0.705 after news of the offer broke.
This is the highest price it has reached in the year to date and marks a 57 per cent or S$0.325 increase from its closing price of S$0.57 for Dec 31, 2024, as shares of the group have been on a steady uptrend through the year.
By 9.47 am, it eased down to S$0.885 – still up from Monday’s close by S$0.18 or 25.5 per cent – with some 209,400 shares transacted.
On Monday, Amara received a privatisation offer from a consortium led by property company Hwa Hong, which was formerly listed on the Singapore Exchange.
The offeror, a special-purpose vehicle called DRC Investments, cited low trading liquidity and challenging macroeconomic conditions as the rationale behind its intent to privatise the company.
The S$0.895 offer represents a 33 per cent premium over Amara’s net asset value per share as at end-December 2024.
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