Perennial Privatisation Offer

Chengdu East HSR

Perennial Real Estate Holdings Limited has announced a voluntary conditional cash offer to acquire all the issued and paid-up ordinary shares. The offer price is S$0.95 in cash for each share you held.

If you are not familiar with Perennial, let me give you a quick summary. The company is an integrated real estate and healthcare company headquartered and listed in Singapore.

The sponsors include Mr Ron Sim, founder of OSIM and Mr Pua Seck Guan, one of Singapore’s pioneer in REITs. Mr Pua had been the CEO of CapitaLand Retail, CapitaMall Trust Management and CapitaLand Financial.

In China, Perennial is a healthcare services owner, operator and provider with two core business segments, being hospitals and medical centres as well as eldercare and senior housing. The company is also a dominant commercial developer with large-scale mixed-use integrated developments.

Their developments include Chengdu East High Speed Railway (“HSR“) Integrated Development, Xi’an North HSR Integrated Development, Perennial Tianjin South HSR International Healthcare and Business City and Perennial Kunming South HSR International Healthcare and Business City.

In Singapore, Perennial invested in and/or manages prime iconic properties located in the Civic District, Central Business District and Orchard Road precinct, such as Capitol Singapore, CHIJMES, AXA Tower, 111 Somerset, Chinatown Point and House of Tan Yeok Nee.

Despite impressive developments in China, the stock market had not done the share price justice. As you can see from the 5 year price chart below, the share price was on a decline.

Perennial Privatisation Offer

Since the offer price of S$0.95 is higher than the 5-year historical prices, the voluntary conditional cash offer provides an opportunity for shareholders to realise their investment at a premium without incurring brokerage fees.

For those that wishes to make a quick buck, this announcement was only made on Friday, 12th June 2020. The stock last traded at S$0.69 which means you can easily make a profit if you managed to buy some shares when the company resumes trading on Monday. That is a profit of S$0.26 per share.

But beware though, the company has a low trading liquidity so I am not sure who will sell you their shares unless they are not aware of this announcement.

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