Brookvale Investments launches takeover of Allgreen Properties

Brookvale Investments has launched a friendly takeover of mainboard-listed Allgreen Properties by offering S$1.60 per share for the developer.

The cash offer values Allgreen at S$2.54 billion, which is a premium of 39.1 per cent over the stock’s closing price of S$1.15 on Friday.

In a filing with the Singapore Exchange, Allgreen also said the offer price is about 20.3 per cent higher than the highest price at which Allgreen’s shares have traded within the three years before the offer announcement.

Brookvale Investments, an investment holding firm owned by Malaysian billionaire Robert Kuok’s group of companies, plans to privatise and delist Allgreen from the Singapore Exchange.

Through his Kerry Group and Brookvale, Robert Kuok already owns about 55.7 per cent of the issued shares of Allgreen.

Brookvale believes that the privatisation of Allgreen will provide the developer with the necessary management flexibility to explore alternative opportunities growth while Allgreen continues to manage and develop its existing businesses.

Analysts said the offer would provide Allgreen’s shareholders with an attractive exit strategy.

They believe that the acquisition will be a boost to Allgreen’s share price, which has declined 2.5 per cent since the start of this year.

DBS Group is the financial adviser to Brookvale on the takeover offer.

Join The Discussion

Compare listings