Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Highly experienced ex-Delta One trader with 17 years of experience trading arbitrage and related strategies across Asian markets.

Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd.

It is important to note that the information provided by Periscope Analytics is based on publicly available data and own knowledge, which has been gathered and synthesized from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions.

All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include, but are not limited to, company announcements, exchange filings, ETF and other passive investment vehicle holdings, and free float and volume data from third-party data providers. Periscope Analytics does not guarantee the accuracy and completeness of the forecasts, estimates and/or other information.

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Perennial Real Estate Holdings / Event-Driven

On 18 May, following a spike in the stock price, the Board of <a href="https://www.smartkarma.com/entities/perennial-real-estate-holdings-limited" target="_blank" data-smartkarma-citation="entities:19089:1" rel="noopener">Perennial Real Estate Holdings (PREH SP)</a> gave the market a heads-up via a <a href="https://links.sgx.com/FileOpen/Perennial_Voluntary%20Announcement_18May2020.ashx?App=Announcement&amp;FileID=611388" target="_blank" rel="noopener">voluntary announcement</a> that it had been notified that some of its substantial shareholders were reviewing their options in relation to their holdings in the company.On 10 June, prior to market open, the company requested a <a href="https://links.sgx.com/1.0.0/corporate-announcements/QSNW0FHYDL8AU650/131f03a3bd935307abe6fb5addf6045c4a6e98002df22de87eae6c246d61198f" target="_blank" rel="noopener">trading halt</a>. Just prior to the clock striking midnight on Friday, Primero Investment Holdings (a consortium of the substantial shareholders and HOPU Fund Management Company) announced a <a href="https://links.sgx.com/FileOpen/Offer_Announcement.ashx?App=Announcement&amp;FileID=617870" target="_blank" rel="noopener">voluntary conditional cash offer</a> to acquire 17.57% of the outstanding shares held by the non-consortium shareholders at S$0.95 per share. The offer price is final and the offer is conditional on the consortium achieving a shareholding of at least 90% in the company, at which point it intends to exercise its right of compulsory acquisition and subsequently delist <a href="https://www.smartkarma.com/entities/perennial-real-estate-holdings-limited" target="_blank" data-smartkarma-citation="entities:19089:1" rel="noopener">Perennial Real Estate Holdings (PREH SP)</a> from the exchanges.While the offer price is at a premium to the last traded price and various VWAPs, minority shareholders are getting the short end of the stick with the Offer Price at a 40% discount to the Net Asset Value as of 31 December 2019. With the consortium already owning 82.43% of the company and large volumes traded post the announcement on 18 May, chances are high that the offeror could reach the 90% threshold.

On 18 May, following a spike in the stock price, the Board of Perennial Real Estate Holdings (PREH SP) gave the market a heads-up via a voluntary announcement that it had been notified that some of its substantial shareholders were reviewing their options in relation to their holdings in the company.On 10 June, prior to market open, the company requested a trading halt. Just prior to the clock striking midnight on Friday, Primero Investment Holdings (a consortium of the substantial shareholders and HOPU Fund Management Company) announced a voluntary conditional cash offer to acquire 17.57% of the outstanding shares held by the non-consortium shareholders at S$0.95 per share. The offer price is final and the offer is conditional on the consortium achieving a shareholding of at least 90% in the company, at which point it intends to exercise its right of compulsory acquisition and subsequently delist Perennial Real Estate Holdings (PREH SP) from the exchanges.While the offer price is at a premium to the last traded price and various VWAPs, minority shareholders are getting the short end of the stick with the Offer Price at a 40% discount to the Net Asset Value as of 31 December 2019. With the consortium already owning 82.43% of the company and large volumes traded post the announcement on 18 May, chances are high that the offeror could reach the 90% threshold.

Perennial Real Estate Holdings - Delisting Opportunism