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

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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.

The Redbrick Team
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