Suntec REIT: Revised Offer Price of SGD 1.19 per Unit Remains Unattractive

We continue to recommend investors reject Aelios’ revised cash offer of SGD 1.19 per unit for Suntec REIT as we believe it does not reflect the REIT’s intrinsic value. While the offer is a 2.6% improvement from its previous offer of SGD 1.16, it still falls below our fair value estimate of SGD 1.38 per unit. We believe the revision of the offer price is to comply with the Singapore Code on Take-overs and Mergers, as Aelios acquired 18 million shares in the open market for SGD 1.19 per unit. According to the Code, Aelios must match or exceed the price paid in the open market to ensure fair treatment of all shareholders. As such, we still do not believe that Aelios intends to take the REIT private with this offer. The closing date of the offer has also been extended to Feb. 3, 2025, from Jan. 20, 2025. Given that the REIT’s unit price has rallied above SGD 1.19 at the open, we think that investors can get more value by selling in the open market as opposed to taking up this offer.