ESR says it has investor group’s proposal to take it private
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The Hong Kong-listed real estate fund manager is the sponsor of Singapore-listed ESR-Logos Reit.
PHOTO: ESR
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HONG KONG - Hong Kong-listed real estate fund manager ESR Group, which halted trading in its shares on May 13, said in an exchange filing that a group of investors has proposed to take the company private.
ESR, which is currently valued at US$5.4 billion (S$7.31 billion) and is backed by US private equity firm Warburg Pincus, said in a statement after the market close that it has received the non-binding, conditional proposal from a consortium of investors made of entities controlled by Starwood Capital Group, Sixth Street Partners and SSW Partners, which could result in ESR’s delisting.
ESR said that under the proposal, which it received on April 25, its shareholders would have a choice between cash consideration or rolling their shares into the go-forward private company, subject to the terms of the final roll-over arrangements.
Earlier on May 13, ESR said in a filing that its trading was halted pending an announcement about inside information.
The company said it has formed an independent board committee to consider the proposal, adding that its consideration was at a “preliminary stage”.
It said Warburg Pincus, which is not part of the consortium, and ESR’s founders are in discussions with the consortium about its proposal, which they welcome and believe would be in the best interest of ESR shareholders.
ESR said it has asked the stock exchange to resume trading on May 14. Its shares closed at HK$10 (S$1.73) on May 10, the highest since March 4, valuing ESR at US$5.4 billion, according to LSEG data. The shares have fallen 7.4 per cent so far in 2024, lagging a 12 per cent increase in the benchmark Hang Seng Index.
Reuters reported the take-private proposal earlier on May 13, with sources saying the discussions were at an early stage, with its terms yet to be finalised.
ESR manages a range of property-focused funds and its own property investments. It went public in Hong Kong in 2019 after pricing its initial public offering at HK$16.80 per share.
Headquartered in Miami, Florida, Starwood Capital has raised over US$75 billion since its inception in 1991 and currently has about US$115 billion of assets under management, its website says. REUTERS
