Cuscaden Peak sets offer price for SPH REIT if bid for SPH is successful

Four of the properties in SPH REIT -- Paragon mall, Clementi Mall, The Rail Mall and Figtree Grove Shopping Centre. Image credit: SPH REITFour of the properties in SPH REIT -- Paragon mall, Clementi Mall, The Rail Mall and Figtree Grove Shopping Centre. Image credit: SPH REIT

Cuscaden Peak said Monday that if its bid to acquire SPH is successful, it will trigger a chain offer for SPH REIT at a minimum of S$0.964 a unit, based on the simple average of daily volume weight average prices for the 20 trading days prior to the offer for SPH.

“For the avoidance of doubt, if and when the SPH REIT chain offer is made, Cuscaden will not be obliged to offer a chain offer price which is higher than the above,” the consortium said in a filing to SGX.

Units of SPH REIT ended Monday at S$1.04 each, up 6.67 percent.

Cuscaden Peak noted that the chain offer won’t be made unless its offer to acquire SPH is successful.

“Cuscaden wishes to emphasise that SPH has not entered into any definitive legally binding agreement with Cuscaden in relation to the proposed acquisition,” the filing said.

Last week, the consortium offered to acquire SPH for S$2.10 a share in cash, only slightly pipping the existing bid from Keppel Corp., according to an announcement Friday.

That compares with Keppel’s bid of S$0.668 in cash and 0.596 Keppel share. As part of Keppel’s offer, SPH would also distribute 45 percent of SPH REIT to shareholders, or 0.782 SPH REIT unit for every SPH share held. In August, when the Keppel bid was made, that translated to an implied value of S$2.099 for every SPH share. Keppel’s bid was valued at S$2.2 billion.

The consortium bidding against Keppel, called Cuscaden Peak, includes Tiga Stars, a wholly owned subsidiary of tycoon Ong Beng Seng’s Hotel Properties, and Adenium, which is a wholly owned subsidiary of Temasek portfolio company CLA Real Estate Holdings, as well as Mapletree Investments‘ indirect wholly owned subsidiary Mapletree Fortress. Mapletree Investments is wholly owned by Singapore state-owned investment company Temasek.

Temasek owns 20.99 percent of Keppel as of 9 July, making it the largest single shareholder, according to SGX data.