Amara appoints W Capital Markets as IFA for offer from Hwa Hong-led consortium

[SINGAPORE] Hotel group Amara on Wednesday (May 7) said it has appointed W Capital Markets as its independent financial adviser as it considers a voluntary conditional general offer from a consortium led by property company Hwa Hong.

The IFA will advise Amara’s directors who are considered independent for the offer. The adviser’s opinion and the directors’ recommendation will be sent to shareholders within 14 days from the issue date of the offer document.

The offeror, a special-purpose vehicle called DRC Investments, launched the offer on Apr 28 at S$0.895 a share. The offer is final and values Amara at S$514.6 million.

DRC Investments intends to privatise the hotel group, citing low trading liquidity and challenging macroeconomic conditions. The vehicle includes a 35 per cent stake held by a fund sponsored by Hwa Hong, formerly listed on the Singapore Exchange, and Malaysia-based Newfields.

It is also 30 per cent owned by Albertsons Capital, with shareholders Albert Teo, Amara’s chairman and chief executive, and his daughter Dawn Teo, Amara’s chief operating officer.

Real estate developer Wing Tai’s wholly owned subsidiary, Winteam Investment, holds a 35 per cent stake in the consortium.

Amara’s shares were flat at S$0.885 on Wednesday, before the announcement.