The Zhang Fuquan family, in collaboration with POWER HF and Wing Tai, plans to acquire Amara for 510 million yuan and delist it

This year, there has been a continuous wave of delistings in the local market, with Sinarmas Land, Paragon REIT, Japfa, SLB Development, ECON Healthcare, and PEC Group announcing their delisting plans. The Zhang Fuquan family, along with private equity firm Dymon Asia, proposed a comprehensive acquisition offer of SGD 0.60 per share in November 2023, but did not receive enough shares for delisting by the deadline. Acquirers Receive Strong Support from Shareholders for More Flexible Operations Post-Privatization The acquirers pointed out that the company would be able to operate more flexibly after privatization. Additionally, since its listing in 1997, the company has never raised funds through the stock market. Xiao Wenbin, Managing Director of Newfields Group, stated that despite ongoing global economic uncertainties, Singapore remains an attractive investment market and has shown resilience. The consortium members include another local real estate holding company POWER HF, as well as a variable capital company Shorea HwaHong Newfields VCC sponsored by individuals related to the Malaysian financial consulting and real estate group Newfields, a wholly-owned subsidiary of listed real estate company Wing Tai, and Albertsons Capital controlled by Zhang Fuquan, Chairman and President of Amara, and his daughter, Chief Operating Officer Zhang Xiaolin. The acquirers have obtained irrevocable commitments from shareholders holding 90.58% of the shares to accept this offer. Wang Rongyao, Managing Director of POWER HF, stated that the acquirers will strive to enhance the future development potential of Amara's assets to meet the evolving consumer demands and expectations. He looks forward to leveraging the collective expertise of the consortium partners to identify strategic growth opportunities in the real estate, hospitality, and living asset sectors. Zhang Guinan, CEO and co-founder of investment management company Shorea Capital, said this offer provides an opportunity for Amara's shareholders to cash out. "We believe this is a highly attractive offer, especially in the context of macroeconomic uncertainty and low stock trading liquidity." A subsidiary of Shorea Capital is responsible for managing the aforementioned variable capital company involved in the acquisition According to the group's website, Amara Holdings' brands include Amara Hotels, the Thai restaurant Thanying, and the retail mall 100 AM. The group has two Amara Hotels in Singapore, one in Bangkok, Thailand, and one in Shanghai, China. The group owns 100 AM malls and office building assets in both Singapore and Shanghai. Amara has also developed several residential projects locally, including the joint venture executive condominium Citylife@Tampines. After the acquisition is completed, Zhang Fuquan and Zhang Xiaolin will continue to be responsible for the operations of Amara. Amara Holdings is a company involved in hotel investment, real estate development, and the catering industry. Further Reading Amara Holdings announced this conditional voluntary acquisition proposal on Monday (April 28) afternoon, with a cash price of SGD 0.895 per share, stating that it would not raise the offer. The acquisition price of SGD 0.895 is 33% higher than Amara's net asset value per share of SGD 0.673 at the end of last year and 27% higher than the last trading price of SGD 0.705 on April 23. Amara requested a trading suspension before the market opened on April 24. The major shareholder of Amara Holdings, the Zhang Fuquan family, along with Hwa Hong, the Malaysian group Newfields, and Wing Tai Holdings, formed a consortium to propose a valuation of SGD 514.6 million for the acquisition of Amara Holdings, planning to delist the company. Local Delisting Wave Continues