Global real estate giant Emaar Properties is making a mandatory unconditional cash offer for all the shares in Singapore-listed RSH.
Dubai-based Emaar has offered S$0.77 for each of the remaining shares of RSH that it does not own.
The offer was triggered after Emaar acquired debt from Golden Ace – a joint venture between Emaar and India’s MGF Group.
Golden Ace, which is 30 per cent-owned by Emaar, had previously held shares amounting to 61.3 per cent of RSH.
The offer price was calculated based on the valuation of the shares that were owned by Golden Ace when Emaar acquired the debt.
Emaar said the deal was aimed at protecting its indirect investment in RSH.
In April this year, Golden Ace defaulted on loans secured with RSH shares. This then gave its lenders DB Trustee and Deutsche Bank deemed interest in RSH.
In a filing with the Singapore Exchange, Standard Chartered Bank said it had acquired all the outstanding loans at the request of Emaar.
This gave Emaar and other relevant parties control over 286,217,378 shares or about 81.17 per cent of the total issued shares of RSH.
As of June 18, RSH has an issued share capital of some S$100.3 million, comprising 352,615,479 shares.
Source : Channel NewsAsia – 19 Jun 2009