Cuscaden Peak announced on Apr 14, that should all Singapore Press Holdings’ shareholders opt for the cash offer of $2.36 per share, Cuscaden Peak would own 30% or more of SPH REIT. Against this background, Cuscaden Peak may be required to make a chain offer for SPH REIT. The default offer from Cuscaden Peak comprised of $1.602 in cash and 0.782 SPH REIT units. At the time of the announcement, the default offer would have been higher at $2.40.
The minimum offer price for the SPH REIT Chain Offer will be based on the latest 20 trading days prior to Oct 29, 2021 which translates into $0.964 per unit.
Cuscaden Peak says “the Offeror reserves the right to reduce the Minimum Chain Offer Price by an amount equivalent to such distribution or return of capital,” after Nov 19, 2021, which was when DPU of $0.0158 was paid.
SPH REIT unitholders were paid DPU of $0.0124 on Feb 9, and will be paid DPU of $0.0144 on May 20. Hence offer price could be as low as $0.9372. “The Offeror will update in due course in the event it intends to exercise its right to reduce the Minimum Chain Offer Price for the SPH REIT Chain Offer if required to be made,” Cuscaden Peak says.
