SINGAPORE (June 29): RHB is upgrading Croesus Retail Trust (CRT) to “take profit” from “neutral” following a proposed acquisition of all its issued units by Cyrus BidCo, a company incorporated in Singapore by funds advised by Blackstone Real Estate.
CRT was offered $1.17 per unit in cash as the book closure date, representing a significant premium to the prevailing and historical trading price of units prior to the last full trading day.
(See also: Blackstone to pay $1.17 in cash per unit to acquire Croesus Retail Trust)
It is approximately 38% premium over the 12-month volume weighted average price (VWAP)/unit, 34% and 31% premium over 6-month and 3-month VWAP/unit respectively.
As at 11.57am, units in CRT are trading 1 cent higher at $1.18.
In a Thursday report, analyst Jarick Seet says, “It also exceeds the highest closing price of the unit since its IPO. This scheme consideration represents an attractive valuation and compelling price for investors.”
Upon completion of the deal and in accordance with its terms, CRT will be delisted from Singapore Exchange (SGX).
The scheme is expected to be completed by 4Q17.
Unitholders of CRT may also receive a distributable income of up to an aggregate of approximately $31.3 million, translating into 4.06 cents per unit.
Says Seet, “As a result, we recommend existing investors to take up the offer as it allows them to realise their investment at an attractive price. In addition, shareholders are likely to also still be entitled to the 4.06 cent dividend, assuming the effective date falls on or before October 31, 2017.”
