“In any case, Suntec’s unit price has rallied above $1.16 after this announcement and investors can get more value selling in the open market as opposed to taking up this offer,” Lee adds in a Dec 6 note. Lee has kept his four-star rating on Suntec REIT against Morningstar’s five-tier scale.
Suntec REIT unitholders should reject investment holding vehicle Aelios’ “unattractive” cash offer of $1.16 per unit, says Morningstar Equity Research analyst Xavier Lee.
The offer, announced on Dec 5, “does not reflect the REIT’s intrinsic value”, adds Lee, who thinks the offer price should be “at or above” his fair value estimate of $1.38 per unit.
