ESR shares jump most since 2020 after takeover bid
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Starwood Capital Group, Sixth Street Partners and SSW Partners have submitted a proposal about a possible privatisation, ESR said on May 13.
PHOTO: ESR GROUP
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HONG KONG – ESR Group shares climbed the most in more than four years after the real estate fund manager received a non-binding takeover proposal from a consortium of investors, confirming an earlier Bloomberg News report.
ESR – the sponsor of Singapore-listed ESR-Logos Reit and Sabana Reit – surged more than 23 per cent to HK$12.28 (S$2.13) in early trade on May 14, hitting the highest level since Sept 7. The stock closed up 23 per cent at HK$12.30 with a market value of about US$6.5 billion (S$8.8 billion).
Starwood Capital Group, Sixth Street Partners and SSW Partners have submitted a proposal about a possible privatisation, ESR said in a statement on May 13, when trading in its shares was suspended.
Citigroup Global Markets Asia is acting as a financial adviser to ESR on the proposal, according to the statement.
While considerations are at an early stage and there is no certainty of a deal, ESR backers, including its founders and Warburg Pincus, welcomed the indicative proposal and believe it is in the best interests of shareholders, it said.
Some existing investors may roll over parts or all of their stakes in a deal, according to people familiar with the matter, who asked not to be identified discussing confidential information.
ESR shares jumped 9 per cent on Feb 21 following a previous Bloomberg report that owners were considering options for the company, including taking it private. Still, the shares went on to hit a record low of HK$7.45 in March. BLOOMBERG
