Swiss Volare Group has made a takeover offer for the local Alpha Integrated REIT | Lianhe Zaobao

The Swiss Volare Group has launched a mandatory, conditional cash acquisition offer for Alpha Integrated REIT (formerly known as Sabana Industrial REIT) at a purchase price of SGD 0.48 per unit. United Overseas Bank (UOB) acted as the financial advisor to Volare Group and announced this news on Tuesday (December 23) on the Singapore Exchange. The announcement stated that Volare has reached an agreement on Tuesday with ESR Group and e-Shang Infinity Cayman to acquire approximately 241.57 million units they hold at a price of SGD 0.40 per unit, accounting for 21.47% of the total units in the trust. Upon completion of the aforementioned transaction, Volare and its concert parties will increase their shareholding in the trust to approximately 41.27%. Prior to this, Volare and its concert parties held about 19.80% of the units, making them the second-largest shareholder of the trust. As the shareholding ratio has exceeded 30%, Volare is obligated to make a mandatory general offer for all units it does not yet own, according to Singapore's Takeover and Merger Code. According to the terms of the offer, the cash consideration for each offer unit is SGD 0.48, which is not less than the highest acquisition price paid by Volare in the past six months. Further Reading Sabana Industrial REIT completes management internalization and renames Alpha Integrated REIT This acquisition price is 2.13% higher than the trust's closing price of SGD 0.47 on the previous trading day (Monday). The announcement pointed out that this acquisition offer has a minimum acceptance condition. At the time the offer closes, the number of units accepting the offer must be sufficient to allow Volare and its concert parties' shareholding ratio to exceed 50% for the offer to be valid. Aside from this condition, the offer is not subject to any other restrictions. Volare operates multiple businesses through its subsidiaries, including gas stations, vehicle care, timber production and trade, furniture manufacturing, asphalt material trade, construction services, road maintenance services, and cross-sector investments. The trust, formerly known as Sabana Industrial REIT, completed its management internalization in October this year and was renamed Alpha Integrated REIT. Following the announcement of the acquisition offer, the trust's stock price rose, increasing by 2.13% to SGD 0.48 as of 10 AM on Tuesday