Aelios, a Singapore-based company owned by billionaire Gordon Tang, has launched a $2.53 billion (S$3.39 billion) bid to acquire full ownership of Suntec Real Estate Investment Trust (REIT).
The offer includes purchasing the remaining shares Aelios doesn’t already own in cash at S$1.16 per share, matching Suntec REIT’s closing price on December 4. According to Reuters calculations, Aelios must spend $1.74 billion to complete the acquisition.
The bid follows Aelios’ recent purchase of over 62 million shares (2.14%) in Suntec REIT, increasing its stake from 29.31% to 31.45%. This triggered a mandatory general offer under Singapore’s rules.
Despite the takeover bid, Aelios intends to keep Suntec REIT listed on the Singapore Exchange. The company also confirmed that it has sufficient financial resources to support the offer, with United Overseas Bank and DBS acting as its financial advisors.
Shares of Suntec REIT have declined by 4.9% year-to-date, according to data from LSEG.
