Company Watch

After Ara divestment, property manager Straits Trading targets growth in new areas

Hong Kong-listed ESR completed its US$5.2 billion acquisition of Ara in January, 214.7 million ESR shares to Straits Trading. PHOTO: SRENDY ARYANTO/VISUAL VERVE STUDIOS
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SINGAPORE - Following the sale of its stake in ARA Asset Management (Ara) to ESR Group, shareholders of The Straits Trading Company now have a choice of receiving additional shares in the company or opting for shares in ESR, one of the largest property managers in Asia Pacific.

Hong Kong-listed ESR completed its US$5.2 billion (S$7.3 billion) acquisition of Ara in January, yielding $142.5 million in cash and 214.7 million ESR shares to Straits Trading. That is a total gain of more than $1 billion for Straits Trading's 22 per cent stake in Ara, or 3.7 times the original cost of the stake.

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