ARA’s founder, others offer to buy out firm in S$1.8 billion deal

SINGAPORE - ARA Asset Management’s founder is teaming up with United States private equity firm Warburg Pincus and other investors to buy out the Singapore-listed real estate fund manager in a deal that values the company at S$1.8 billion.

ARA’s founder and chief executive John Lim and a group of investors including Warburg Pincus, Straits Trading Company, Cheung Kong Property Holdings and AVIC Trust are offering to privatize the company at S$1.78 per share, the parties said in a joint statement on Tuesday (Nov 8).

The existing controlling shareholders have an aggregate stake of about 46.2 per cent. The offerors said the buyout – to be carried out by way of a scheme of arrangement – will offer ARA shareholders the opportunity to realise their investment at an attractive valuation. The offer represents a 43.9 per cent premium to the 12-month volume-weighted average price up to and including Nov 2, they said.

The privatization requires the approval of more than 50 per cent of the number of shareholders present and voting in person or by proxy at the scheme meeting, and at least 75 per cent in the value of shares of the shareholders represented at the meeting. It also requires approvals from the court, as well as government and regulatory agencies.

Trading in the shares of ARA, which manages S$30 billion in Asian property assets, had been halted since Thursday pending the announcement and will resume on Wednesday. - AGENCIES