On Aug 24, there was a minor amendment to the agreement with ESR Cayman paying US$519 million in cash, and US$4,673 million by the issue of 1,345,898,078 consideration securities, with the allocation between consideration shares and consideration VLNs to be determined in accordance with the agreed calculation methodology. In the latest announcement there will be no issue of VLNs.
ESR Cayman announced on Oct 12, that it will not be issuing vendor loan notes (VLN) to sellers of ARA Asset Management. Instead these would be replaced by ‘consideration shares’ to the seller or consideration recipient.
On Aug 4, ESR Cayman had announced that it planned to acquire ARA Asset Management for US$5.19 billion. Of this, US$519 million would be in cash, US$4,286 million would be by the issue of 1,234,438,841 consideration shares at a price of HK$27 per share and US$387 million would by the issue of 111.46 million VLNs to be eventually converted into consideration shares.
