Existing unitholders of Accordia Golf Trust (AGT) should keep their AGT units until Accordia Golf, the sponsor and parent company of AGT, completes the deal, according to KGI Securities.
This is because there is still a 1 cent upside from the current unit price and a 1 cent dividend payout in Sept, the brokerage notes.
“We must highlight there is a risk that the final payout to unitholders might be lower than 75 cents if there are claims from the sponsor, but we believe this risk is minimal,” KGI analyst Joel Ng writes in a note dated August 20.
On June 29, Accordia Golf announced its intention to acquire 88 golf courses from AGT for JPY61.8 billion ($804.1 million or 73.2 cents per unit).
Accordia Golf subsequently raised its offer price to JPY65.2 billion ($848.4 million or 77.2 cents per unit).
The revised offer came following Hibiki Path Advisors’ threat to block the deal unless a better offer was made.
Hibiki is the largest minority unitholder of AGT.
KGI says investors should accept the offer as Accordia Golf is unlikely to revise the purchase price higher.
It notes that Hibiki and 50 other minority unitholders have accepted the latest offer.
KGI says Hibiki’s efforts are commendable as minority unitholders would not have received a better offer.
“Minority unitholders should buy Hibiki a 3-star Michelin meal,” quips Ng.
As at 2.29 pm, AGT was flat at 73.5 cents with 800,500 units changed hands.
