An entity controlled by Indonesia’s Widjaja family said on Thursday it had offered to buy the shares of Singapore-listed Sinarmas Land that it does not already own, valuing the property firm at S$1.32 billion ($986 million).
The Widjajas own a 65.75% stake in Sinarmas Land through their family trust, according to LSEG data.
The family controls the Sinar Mas Group, which has a wide range of businesses, including pulp and paper, property and banking, mainly based in Indonesia.
Under the all-cash offer, Sinarmas shareholders would receive S$0.31 per share, representing a 12.7% premium to the stock’s last close on Monday. The shares are on a trading halt since then.
The ability of Sinarmas Land to pay dividends depends largely on the performance of the Sinar Mas Group’s units, many of which are listed in Indonesia, the family said.
The offer provides shareholders an opportunity to exit and re-deploy their investment capital directly to the Indonesia-listed firms such as PT Bumi Serpong Damai and PT Puradelta Lestari, units of Sinar Mas Group, the family said.
Since the family is a majority shareholder of Sinarmas Land, the offer is not subject to a minimum number of acceptances from shareholders, they said.
($1 = 1.3384 Singapore dollars)
Reuters
