Consortium's privatisation offer for Amara closes with 97.74% valid acceptances
As at the close of the offer at 5.30 pm on Tuesday, the total number of shares owned, controlled or agreed to be acquired by DRC Investments, together with valid acceptances of the offer, amounted to 562 million shares.
DRC, a consortium led by property developer Hwa Hong, will exercise its right to compulsorily acquire all remaining shares at the offer price of S$0.895 a share.
Amara will subsequently be delisted from the Singapore Exchange.
DRC said it has no intention to preserve the group's listing status and will instead make it a wholly owned subsidiary.
DRC is a special-purpose vehicle that is 35 per cent held by a fund sponsored by formerly Singapore-listed Hwa Hong and Malaysia-based Newfields. Another 35 per cent shareholder is a wholly owned subsidiary of local developer Wing Tai.
A NEWSLETTER FOR YOU
Tuesday, 12 pm Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Sign Up
Sign Up
Albert Teo, Amara's chairman and chief executive officer, and his daughter, chief operating officer Dawn Teo, hold the remaining 30 per cent of DRC.
The S$0.895 offer price represents a 27 per cent premium over Amara's closing price of S$0.705 on Apr 23, ahead of the trading halt called by the company the following day.
It is also a 33 per cent premium over Amara's net asset value per share as at end-December 2024.
In a previous bourse filing, DRC cited low trading liquidity and challenging macroeconomic conditions for Amara's privatisation.
This includes a rise in protectionist policies and shifting trade agreements, which could disrupt supply chains and increase costs for businesses. These may result in higher operations costs, squeezing profit margins and affecting long-term growth prospects, it said.
'The offer represents a unique cash exit opportunity for shareholders to liquidate and realise their entire investment at a premium, an option which may not otherwise be readily available due to the low trading liquidity of the shares,' it added.
The latest privatisation offer was the second time Amara was the target of a privatisation deal.
In 2023, the group received a voluntary cash offer at S$0.60 a share from Amethyst Assets, a consortium linked to Albert Teo, other members of his family and private equity investor Dymon Asia.
But the attempt fell short of the 90 per cent threshold for acceptances, at 88.39 per cent in shareholding interest.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
10 minutes ago
- CNA
More opt for mid- to long-term car leasing options, citing affordability and convenience
Some car rental firms are seeing more Singapore drivers opting for mid- to long-term leasing options over buying cars. They say their customers find these options more affordable and convenient as they don't need to be tied down by a 10-year Certificate of Entitlement, which can cost over S$100,000 upfront. Drivers also do not have to deal with the car's maintenance.
CNA
an hour ago
- CNA
No plans to 'fully liberalise' cross-border ride hailing, but app bookings for licensed taxis being considered: LTA
SINGAPORE: There are no plans to fully liberalise cross-border point-to-point transport via ride-hail services, the Land Transport Authority said on Sunday (Aug 3). However, the authority added that it is considering the use of ride-hailing apps to book cross-border trips on licensed taxis and increasing the number of boarding and alighting points in Singapore and Malaysia. LTA noted recent Malaysian media reports suggesting that Singapore is looking to introduce cross-border on-demand ride services, and said it wanted to clarify the current arrangements and ongoing discussions. Singapore and Malaysian officials met to discuss cross-border service arrangements on Aug 1, with the issue of allowing cross-border e-hailing to ferry passengers raised during discussions. LTA, however, said that no decision was made on the issue. 'While we are open to ideas to improve the cross-border commuting experience, we would like to clarify that LTA has no plan to fully liberalise cross-border point-to-point transport via ride-hail services,' said the authority. The Malay Mail reported on Sunday morning that Johor and Singapore have proposed introducing a cross-border e-hailing service as an alternative mode of transport for commuters. Johor Chief Minister Onn Hafiz Ghazi was quoted as saying the proposal was among various matters discussed during his meeting with Singapore's Acting Transport Minister Jeffrey Siow. The chief minister also said that the proposed service would offer more flexible on-demand transport options for the public, as well as ease congestion. LTA said in its clarification that there is an existing reciprocal cross-border taxi scheme in place that allows a licensed fleet of up to 200 taxis from each side to ferry passengers between Singapore and Johor Bahru. These cross-border taxis are currently permitted to pick up and drop off passengers only at a single designated point in the other's country - Larkin Sentral in Johor Bahru for Singapore taxis and Ban San Street Terminal in Singapore for Malaysian taxis. LTA said the existing quota of the cross-border taxi scheme is not fully utilised. "In view of commuter demand for more convenient cross-border travel, we will encourage full take up of the quota of licensed taxis,' said LTA. 'We are also considering increasing the number of boarding and alighting points in each other's country, and to use ride-hailing apps to book cross-border trips on licensed taxis.' LTA said that in any adjustment to the cross-border point-to-point transport regime, its key priorities are to better meet commuter demand while safeguarding the interests of Singapore's taxi and private hire drivers. 'As cross-border taxi scheme is a reciprocal arrangement, any change will require agreement from both governments,' it added. BUS OPERATIONS At the meeting, LTA said the Malaysian authorities also requested Singapore's cross-border buses to start their operations from Johor Bahru at 4am. LTA said it is assessing whether the operating times of these services can be adjusted to help address bus crowding in the early mornings. 'A key consideration is that the first buses should match the starting time of our local bus and MRT services when they arrive in Singapore. LTA is exploring with cross-border bus operators the possibility of bringing forward the bus start times slightly, as well as engaging private bus operators on their interest to operate earlier services at higher fares.' Public bus operations SBS Transit and SMRT told CNA that they are engaging their captains regarding the request. Currently, the earliest public bus across the border on weekdays begins at 5am. SBS Transit said it has to consider the availability of its resources while SMRT said it aims to ensure its services meet commuter needs while maintaining operational sustainability. The safety of commuters and the well-being of bus captains remain the top priorities, added SMRT.
Business Times
2 hours ago
- Business Times
Governance, economic factors outweigh environmental, social aspects in companies' materiality assessments: report
[SINGAPORE] Listed companies in Australia, Malaysia and Singapore rated environmental and social factors as less important than governance and economic performance in their materiality assessments, indicated a recent report by Governance for Stakeholders and the Sustainable Finance Institute Asia. The report found that social factors were ranked third in importance, while environmental aspects placed fourth, even though both are frequently mentioned in materiality assessments. Governance were ranked as the most important, followed by economic performance. Materiality assessments, which are often disclosed in annual or sustainability reports, are typically carried out by companies to identify and manage their risks and opportunities – especially on environmental, social and governance (ESG) issues that are most significant to their business and stakeholders. These were the findings from a study conducted by NUS Business School accounting professor Mak Yuen Teen and Baker Tilly Singapore's head of ESG and sustainability Tina Thomas. The study collected data mostly from the FY2022 and FY2023 annual and sustainability reports of companies in the three markets. It noted that companies should ensure that they are not underestimating the importance of environment and social-related factors, while recognising the importance of governance and economic performance at the same time. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up 'There is a risk of blind spots, particularly when it comes to considering the impact of environment-related factors on their business and how their business affects the environment. Companies may view them as issues that may only impact them in the longer term, and their materiality assessments may be based on short-term horizons,' said the report. The report, however, noted that these findings are only from a smaller dataset of about 180, compared to the 300 originally selected, as many companies did not have clear presentations of their materiality assessments which showed the relative importance of different sustainability-related risks and opportunities (SROs). The researchers had initially selected 100 companies from each market based on their sector and market capitalisation for the first phase of its study. It later had to drop several of them and included other companies with lower market capitalisation for the second part of its study, which was to assess how SROs were being ranked in relative importance. Among the three markets, Bursa-listed companies were found to have the clearest presentation of materiality assessment, with 87 per cent of companies disclosing the relative importance of different SROs. Companies listed on the Singapore Exchange (SGX) came in second place at 45 per cent, while only 14 per cent of companies on the Australia Securities Exchange (ASX) did so. This is because many Bursa-listed companies referenced Bursa Malaysia's sustainability reporting guide which provides guidance on materiality assessment. Prioritisation of governance and economic factors The report noted that climate change and emissions, corporate governance, financial performance, human capital and labour management, as well as workplace health and safety were among the top 10 SROs most frequently mentioned in all three markets. Human capital and labour management, along with workplace health and safety, were the top two most frequently mentioned factors in the materiality assessments of companies listed on Bursa Malaysia and SGX. However, frequency did not translate to importance in some of these disclosures. Environmental factors were ranked first only among Australia-listed companies in the agriculture, forestry and fishing sector, as well as SGX-listed companies in the electricity, gas, steam and air conditioning supply sector. One possible reason for the lower prioritisation of environmental risks and opportunities could be due to the perceived difficulty in setting meaningful and achievable targets, noted the report. 'Climate and environmental targets are often viewed as complex, costly to implement, and offering limited short-term financial returns. As a result, the perceived burden of target-setting may influence the prioritisation process itself – suggesting that, rather than prioritisation leading to target-setting, the inverse may be true: the difficulty of setting targets can suppress the perceived materiality of certain issues,' it said. Companies' boards also tend to prioritise topics related to governance and ethics, and pay closer to material factors that have high stakeholder interest and high business impact. 'Boards often seek assurance that clear metrics and achievable targets can be developed for these topics, favouring those that offer more immediate or tangible implementation pathways,' added the report. The report urged boards to be more engaged with materiality assessment to ensure that companies do not have blind spots, especially over environment-related factors that may not significantly impact the company in the short term. It added that boards have an important role to ensure that companies' management carefully consider the importance of different SROs over short, medium and long-term horizons. Investors must also play a role in demanding better disclosures of material SROs, and questioning the prioritisation of material SROs and how they are addressed by companies. Nonetheless, the report noted that the data was collected from disclosures made before regulators in Australia, Malaysia and Singapore mandated that companies climate disclosures be aligned with standards set by the International Sustainability Standards Board (ISSB). A materiality reassessment aligned with ISSB standards may result in a reprioritisation of sustainability topics within corporate disclosures. 'This is due to the specific focus of these standards on financial materiality, which highlights sustainability-related risks and opportunities that are likely to influence enterprise value and investor decision-making,' the report said. However, it added that companies that present both financially material and impact material topics will benefit from a more holistic and balanced approach in their disclosures. This is because they would remain responsive to evolving regulatory requirements while continuing to reflect broader stakeholder concerns. 'Topics currently deemed to have high-impact materiality or negative externalities to people, environment, or non-financial stakeholders may evolve into financially material concerns as sector-specific or regional regulations emerge, potentially exposing companies to compliance costs or other financial consequences tied to previously unpriced externalities,' said the report. It also added that companies should factor global economic shocks into their materiality assessments, and not just confine the process to traditional ESG domains. This is due to the ongoing geopolitical and economic uncertainties with the United States imposing widespread tariffs and weakening global trade and international cooperation. 'This calls for more adaptive, forward-looking assessments that integrate geopolitical risk, scenario planning and the resilience of business models in a fragmented world,' it said.
