PAG announced that it will offer a conditional offer to acquire shares in Spring REIT (01426) at a price of $4.85 per share on September 26.
The offer must be up to two conditions:
(i) the Offeror is required to receive valid acceptance at or before 4 pm on the Closing Date (or such later time or date as the Offeror may determine in accordance with the rules of the Takeovers Code) Was withdrawn and the acceptance will cause the Offeror and its parties acting in concert to hold more than 50% of the Units; and
(ii) The resolution to approve the Huizhou Transaction was not passed by the Independent Unitholders at the EGM.
Condition (i) is required and PAG reserves the right to exempt condition (ii). In addition, if you pay attention to it, PAG does not have a price increase statement, that is, PAG reserves the right to raise the price in the future.
$4.85 is a very good price. Coupled with the quick start of the offer period, the competition with time reflects the sincerity and willingness of PAG.
If you are a long-term minority shareholder of Chunquan, are you satisfied with the past performance of major shareholders and managers (ie Chunquan Asset Management Company)?
When the public stocks of REITs have performed well, but spring springs are long-lasting, are you satisfied?
A new unit is issued at a discount to the net asset value to acquire the UK property and the recently proposed Huizhou property, which seriously dilutes the minority shareholders’ equity. Do you want to make such a long-term fish?
For the benefit of their own interests, minority shareholders believe that they will support PAG and accept their voluntary conditional offer; unless the fund manager has a private interest that is not visible, what reasons does institutional investors reject this sincere offer?
As a minority shareholder, what can we do now?
1. Accept the PAG offer by October 15th. It should be noted that brokers generally receive customer notices to accept the offer, which will be processed two or three days before the expiration of the offer. However, the current PAG offer is to compete with the time and obtain 50% of the equity before October 15th. Announce that the offer becomes unconditional and veto the Huizhou transaction that was voted on October 29. Therefore, you must inform your broker to handle it before October 15. Don’t wait until the end of October, otherwise PAG will not be able to get enough on schedule. The number of votes to veto Huizhou’s transactions. It is easy to know if your broker will handle it for you before October 15. Just pay attention to the changes in CCASS. After accepting the offer, you can pay attention to the changes in the CCASS shareholding of your brokerage to see if you can accept the offer as scheduled. If you don’t know how to look at CCASS, you can leave a message to let me know, so I can help you to monitor whether the brokers act according to your intentions.
2. To take a step back, if your broker can’t accept the offer for you before October 15, you can inform your broker in advance of your offer at the special shareholders meeting on October 29, while accepting the offer. Opposition to the acquisition of Huizhou property.
PAG’s proposal to remove the manager (ie Chunquan Asset Management Company) was vetoed by the majority in the previous year. Will this voluntary conditional cash offer also fail? Let me talk about my opinion in the next article.
Save Spring, you can only rely on small shareholders to sit up and support PAG!