Wheelock Properties – Better Risk-Reward for Scalping Now

Wheelock Properties – Holding Out for a Better Offer

Wheelock Properties - Not Trading Like It Wants To Go at S$2.10

Singapore and emerging market real estate

Royston Foo

Equity Bottom-Up

Wheelock Properties (S) / Equity Bottom-Up

This morning, <a href="https://www.smartkarma.com/entities/52" target="_blank" data-smartkarma-citation="entities:52:1">Wheelock &amp; (20 HK)</a> announced that it does not intend to revise its Offer Price of S$2.10 per share for Wheelock Properties. In accordance with the Singapore Code on Take-overs and Mergers, Wheelock &amp; co will not be allowed to subsequently amend the terms of the Offer, including the Offer Price, in any way. The exit of retail investors vested prior to the privatisation offer and entry of new institutional investors could have potentially changed the game plan of Wheelock &amp; Co. Due to the higher investment and holding costs of these institutional investors, Wheelock &amp; Co’s bargaining power has improved, in my opinion. Previously, I had expected an improved revised offer at S$2.30 per share and recommended investors to wait for an improved offer and accept the offer at a better price. With Wheelock &amp; Co finalising its offer price at S$2.10 per share, this recommendation no longer holds. Nonetheless, I reiterate my view that this privatisation offer from Wheelock &amp; Co provides a good opportunity for early investors to realise the value in their investments and recycle their capital and investors should consider accepting the offer and recycle the capital into other property developers that are trading at steep discounts.

This morning, Wheelock &amp; (20 HK) announced that it does not intend to revise its Offer Price of S$2.10 per share for Wheelock Properties. In accordance with the Singapore Code on Take-overs and Mergers, Wheelock &amp; co will not be allowed to subsequently amend the terms of the Offer, including the Offer Price, in any way. The exit of retail investors vested prior to the privatisation offer and entry of new institutional investors could have potentially changed the game plan of Wheelock &amp; Co. Due to the higher investment and holding costs of these institutional investors, Wheelock &amp; Co’s bargaining power has improved, in my opinion. Previously, I had expected an improved revised offer at S$2.30 per share and recommended investors to wait for an improved offer and accept the offer at a better price. With Wheelock &amp; Co finalising its offer price at S$2.10 per share, this recommendation no longer holds. Nonetheless, I reiterate my view that this privatisation offer from Wheelock &amp; Co provides a good opportunity for early investors to realise the value in their investments and recycle their capital and investors should consider accepting the offer and recycle the capital into other property developers that are trading at steep discounts.

Wheelock Properties – Checkmate…Game’s Over