The proposed acquisition will enable Straits Trading to deliver enhanced long-term growth and capital returns to its shareholders. On a pro forma basis for FY2020, it is also earnings per share (“EPS”)- accretive for the Group.
The Straits Trading Company’s wholly-owned subsidiary STC Capital has entered into a share sale and purchase agreement with JL Equity II, a unit of the JL Family Office (JLFO) for the proposed acquisition of JLFO’s 10.5% stake in Straits Real Estate for an aggregate consideration of $105 million in cash.
In a joint media release dated April 5, the parties state that JLFO “seeks to divest its stake in Straits Real Estate at the end of its successful investment cycle”. Post-transaction, Straits Real Estate will become a fully owned subsidiary of Straits Trading. The completion of the transaction is scheduled for April 9 and it will be fully funded by the group’s internal cash resources.
