Amara surges 27% to intra-month high on privatisation offer
The S$0.895 offer represents a 33% premium over the company’s net asset value per share as at end-December 2024
[SINGAPORE] Shares of hotel group Amara soared shortly after the market opened on Tuesday (Apr 29), after news broke on Monday that it received a voluntary conditional general offer at S$0.895 apiece.
The counter hit an intraday high of S$0.895 at 9.09 am on Tuesday as 172,400 shares changed hands – marking a rise of S$0.19 or 27 per cent from its latest closing price for Monday, when it finished unchanged at S$0.705 after news of the offer broke.
This is the highest price it has reached in the month of April. In the month to date, it marks an increase of 49.2 per cent or S$0.295 from its intraday high of S$0.60 on Apr 1.
By 9.47 am, it eased down to S$0.885 – still up from Monday’s close by S$0.18 or 25.5 per cent – with some 209,400 shares transacted.
On Monday, Amara received a privatisation offer from a consortium led by property company Hwa Hong, which was formerly listed on the Singapore Exchange.
The offeror, a special-purpose vehicle called DRC Investments, cited low trading liquidity and challenging macroeconomic conditions as the rationale behind its intent to privatise the company.
The S$0.895 offer represents a 33 per cent premium over Amara’s net asset value per share as at end-December 2024.
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