“We believe the revision of the offer price is to comply with the Singapore code on takeovers and mergers, as Aelios acquired 18 million shares in the open market for $1.19 per unit,” Lee writes in a Jan 9 note.
Morningstar Equity Research analyst Xavier Lee continues to recommend investors reject Aelios’ revised cash offer of $1.19 per unit for Suntec REIT as it “does not reflect the REIT’s intrinsic value”.
While the offer is a 2.6% improvement from its previous offer of $1.16, it still falls below Lee’s fair value estimate of $1.38 per unit of Suntec REIT.
