The company, as with many property-related businesses, faces a challenging and unprecedented macro and operating environment in Singapore and UK driven by Covid, geopolitical tensions and Brexit. Its office investment properties in the UK are ageing, the expected capital expenditure amidst the current inflationary environment and loss of income arising from refurbishments and redevelopments may impact the company’s future income. Leasing risks and potential delays may also affect future occupancies and rent outlook. According to hte announcement, the company may also not be able to monetise its assets at favourable capital values.
Hwa Hong Corp announced a voluntary conditional offer to its shareholders by a consortium formed by its substantial shareholders (the offeror). The offer price of $0.370 in cash per exceeds all previous closing prices of the shares in the 9-year period up to and including May 12, 2022, being the last full trading day of the shares, and represents a premium of approximately 29.8% over the net asset value per share as at December 31, 2021, the Hwa Hong announcement says.
According to the announcement, the rationale for the offer provides shareholders with an opportunity to realise their investment at a premium, of approximately: (i) 27.6% over $0.290, the last traded price per share on the last trading date; (ii) 25.9% over $0.294, VWAP of the shares for the one-month period up to and including the last trading date; (iii) 22.1% over $0.303, the VWAP of the Shares for the three-month period; (iv) 12.8% over $0.328, the VWAP of the Shares for the six-month period up to and (v) 15.3% over $0.321, the VWAP of the Shares for the 12-month period up to and including the last trading date; and (vi) 29.8% over $0.285, the NAV as at Dec 31.
