Singapore company in billion-dollar deal with consortium that includes Warburg Pincus


Image Credit: Bernard Spragg

First it was Neptune Orient Lines, then SMRT. Now a third Singapore listed company, ARA, is soon to be bought out by an association of investors in another billion-dollar deal. These investors include Warburg Pincus LLC, a U.S. private equity firm, as well as the founder of ARA Asset Management Ltd. The offer made to buy ARA is valued at S$1.78 billion.

Founded in 2002 by John Lim, ARA manages real-estate investment trusts (REITs) in Asia. ARA Asset Management manages property assets all over Asia, including logistics facilities, shopping malls and offices.

The consortium has made an offer of S$1.78 per ARA share, a 26% premium to shares traded on Wednesday, 2 Nov, at S$1.41. For a Singapore company to be taken over, if an investor has at least 30% stakeholding, the buyer has to make an offer for the entire firm. Assuming the offer is agreed with other current shareholders of ARA, Warburg Pincus will possess a 30.7% stake, becoming the largest shareholder.

Additionally, the consortium has expressed its intent to delist ARA from the Singapore stock exchange and form closer working relations with its new partners.