Volare Group in its announcement on Jan 20 for a partial offer to Sabana REIT's unitholders said a formal document, setting out the terms and conditions of the partial offer will be despatched to unitholders not earlier than 14 days and not later than 21 days from the date of the offer (Jan 20).
On Jan 21, Sabana REIT's manager said a circular with "the recommendation of the directors of the Manager who are considered independent for the purposes of the partial offer will be issued to unitholders within 14 days from the date of issue of the offer document".
On Jan 20, Volare Group (the offeror), a Swiss entity that took a 5% stake in Sabana REIT in 2022, is making a partial offer for an additional 10% of Sabana REIT at 46.5 cents to its unitholders other than those already owned, controlled or agreed to be acquired by the offeror or any party acting in concert with it.
The announcement on Jan 20 says that Volare received consent from the Securities Industries Council to make the partial offer on Dec 12, 2022.
The announcement on behalf of Volare Group says "(i) the offeror which holds 59,493,226 units, representing approximately 5.4% of the issued units of the offeree; (ii) Quarz Capital Asia which has a deemed interest in 142,531,628 units representing approximately 13.0% of the issued units of the offeree; and (iii) ESR Cayman which holds 12,524,228 units and has a deemed interest in 214,299,143 Units, representing approximately 1.2% and 20.0% of the issued Units of the offeree respectively."
The Jan 20 announcement says the Volare Group is a company incorporated in Switzerland on October 7, 1975. It has several lines of business. A subsidiary Oel-Pool AG is one of Switzerland’s leading suppliers of fossil fuels. Oel-Pool AG and its subsidiary Moveri AG operate over 700 petrol stations under various brands.
The rationale for the offer is because Volare Group wants to diversify away from fossil fuels, and build up a real estate portfolio. The partial offer, if successful, would enable the offeror to increase its direct holdings in Sabana REIT.
Volare Group says Sabana REIT faces a challenging interest rate environment with Real Estate Investment Trusts generally having declining yields.
On the other hand, the partial offer indicates that Volare believes that while the current business and economic outlook present a number of challenges, there is inherent long-term value in Sabana REIT.
Sabana REIT's FY2022 results will be out on Jan 26.
