Amara receives $0.895 per share buyout offer

The offer represents a 27.0% premium over Amara’s last traded price.

Amara Holdings has received a privatisation offer at $0.895 per share from a consortium including Hwa Hong, Wing Tai, and the Teo family, which controls the company.

DRC Investments intends to delist Amara from the SGX and make it its wholly-owned subsidiary. 

The offer price represents a 33.0% premium over Amara’s net asset value as of December 2024, a 27.0% premium over its last trading price, and a 48.9% premium over the volume-weighted average prices across the past year.

In a bourse filing, the offeror said that the offer will provide shareholders with an attractive exit to avoid market volatility amidst an uncertain economic climate driven by trade protectionism, geopolitical tensions, and shifts in consumer behaviour.

The offeror also said that this will give the company greater management flexibility, improved access to capital, and savings on compliance costs by delisting.

“Our offer presents Amara shareholders with an opportunity to realise their investment at an attractive price and premium over the historical traded share prices. At a 27.0% premium over Amara’s last traded price, we believe it is a compelling offer, especially in the face of macroeconomic uncertainties and the low trading liquidity of Amara’s Shares,” Eugene Teo, CEO and co-founder of Hwa Hong’s Shorea Capital said.

The offer is subject to the offeror receiving valid acceptances representing at least 90% of the voting rights by the close of the offer.