SINGAPORE (May 18): Unnamed “substantial shareholders” of Perennial Real Estate Holdings are “reviewing the options”, the company said after market hours on May 18.
Earlier in the day, shares of Perennial surged 14.85% to a nine-month high of 58 cents.
The company’s comment was made via a “voluntary announcement” in response to this unusual share movement of its share price.
“The company understands that a decision has yet to be made by such substantial shareholders and there is no assurance that a transaction will take place,” said Perennial.
According to Perennial’s 2018 annual report, CEO Pua Seck Guan owns 10.32% of the company; chairman Kuok Khoon Hong controls the largest block of 36.48% while Ron Sim, the vice chairman, holds 15.45%.
On May 6, Perennial said that itself and a group of investors are selling a 50% stake in AXA Tower for and transferring 50% of the outstanding loan, to Alibaba Singapore.
The deal is expected to be completed by end June. 2020, and is based on a property purchase price of $1.68 billion.
The Perennial-led consortium has in turn, transferred the remaining 50% equity stake in AXA Tower and the remaining 50% outstanding loan to a new entity, PRE13.
Less than a month earlier, on April 16, Perennial said it will sell its 30% stake in Perennial Somerset Investors Pte. Ltd, which owns 111 Somerset, to Shun Tak Holdings Limited for $155.1 million.
