ANZ advises SingLand shareholders to accept UIC’s offer

Minority shareholders of Singapore property group SingLand should accept the S$8.40 a share offer by United Industrial Corporation (UIC) as the price is fair and there is a risk that they could end up holding shares in an unlisted firm, independent financial adviser ANZ said on Monday.

They can, alternatively, sell their SingLand shares on the open market since the shares are currently trading well above UIC’s offer price.

ANZ is the bank appointed by independent directors to advise on the proposal by majority shareholder UIC to buy the remaining 19-plus per cent of SingLand that UIC did not already own for around S$761.7 million.

“We recommend that the independent director should advise the shareholders either to accept the offer or to consider selling their shares in the open market if they can obtain a price higher than the offer price,” ANZ said in a document sent to shareholders.

SingLand is one of Singapore’s largest landlords.

Its properties include Singapore Land Tower and Clifford Centre in the heart of the central business district, SGX Centre which houses the Singapore Stock Exchange, and Marina Square shopping centre.

UIC’s offer for SingLand was 11 per cent above the stock’s last traded price at the time of the offer.

But SingLand shares have risen. The stock closed at S$9.56 on Monday.

Source : Channel NewsAsia – 24 Mar 2014

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