Based on AR22, the entire Teo clan already owns ~60+% of the company. So Dymon Asia's 30% stake is mainly just to buy out the minorities and possibility some of the members in the Teo clan. This is probably also 1 of the few MBOs participated by local PE that is buying out an "asset heavy" company?
For context, Amara's balance sheet are mainly made up of 2 types - Investment properties (small retail/office mixed developments in Spore/China) and PPE (AMARA hotels in Spore/China/Thailand), making up ~103% and 59% of its equity. To balance, it is ~75% geared to finance these properties together with some boutique residential development in Spore. The investment properties are at fair value and so there is no hidden value. But the AMARA hotels are at cost less depreciation and although they are on leases, they should probably be undervalued on the balance sheet. So the 60cent offer (or ~90% of NAV of 68cents as of end AR22) while looks decent, will be undervaluing the hotels and the AMARA brand.
But for Teo clan, I guess the bottom line is that you can do away with annual remuneration (that doesn't even reveal the names) in the fear of having your talented family members been poached away. And also dispense away with really independent directors.
Teo family, Dymon Asia consortium launches bid to take Amara private at S$0.60 a share
The offer price is final and represents a premium of 53.8 per cent over Amara’s share price of S$0.39 on Jun 15, before the company announced that its key shareholders were in talks over a possible transaction. Amara most recently transacted at S$0.46 before a trading halt was called on Nov 10.
Amethyst is 36.2 per cent-owned by First Security Pte Ltd (FSPL), a company in turn owned by Albert Teo and his siblings Susan Teo and Teo Kwee Chuan – who are Amara’s executive director and property division director respectively.
Concordia United, an investment vehicle under Dymon Asia Private Equity, holds another 30.3 per cent stake in Amethyst.
Other shareholders of the offeror include Albertsons Capital – jointly owned by Albert Teo and his daughter Teo Shao-Lynn, Dawn – and Corinne Teo, another sibling of the chief executive who is the group’s quality and systems manager.
https://www.businesstimes.com.sg/compani...s060-share
Amara disagrees with ex-ID over what he calls unresolved issues
https://www.businesstimes.com.sg/propert...ved-issues