Chinese buyout firm Hopu is partnering with key shareholders of Perennial Real Estate Holdings, including Wilmar International and its CEO, to take Perennial private in a deal that values it at S$1.58 billion.
The consortium, which includes firms owned by entrepreneur Ron Sim and Perennial’s CEO, said late on Friday (Jun 12) that the offer comes at a time when the COVID-19 pandemic has roiled the global economy.
Perennial is a Singapore-listed real estate and healthcare firm.
The acquirer said it has secured undertakings from about 82 per cent of Perennial’s shareholders, and that Hopu will provide funding to purchase the rest of Perennial’s shares from the non-consortium shareholders.
“Perennial will require a significant amount of capital to pursue its growth objectives in China through investments in large-scale integrated development projects,” it said.
Perennial’s China assets under development accounted for about 42 per cent of its total property portfolio value as of end-2019.
“By privatising Perennial together with Hopu, the consortium believes Perennial will be able to secure a new long-term capital partner and tap on the track record and experience of HOPU and its affiliates,” the consortium said, referring to Hopu Fund Management Company Ltd.
The consortium’s S$0.95 per share offer price represents a nearly 38 per cent premium to Perennial’s closing share price of June 9.
United Overseas Bank is the lead financial adviser to the acquirer and DBS is the financial adviser.