Key Takeaways
- Sector: Real Estate.
- Geography: Indonesia, Singapore.
Analysis
The Widjaja family, one of Indonesia's wealthiest clans, has increased its offer to acquire the remaining shares of Sinarmas Land, a leading property developer, amid criticism from minority shareholders over the initial bid.
Lyon Investments, controlled by the Widjaja family, announced a 21% increase in its offer price, raising it from S$0.31 to S$0.375 per share. This adjustment values Sinarmas Land at approximately S$1.6 billion (US$1.2 billion). The revised offer follows concerns from minority shareholders and the Securities Investors Association (Singapore) (SIAS), who argued that the original bid significantly undervalued the company.
David Gerald, president of SIAS, criticized the initial offer as "exploitative," noting that Sinarmas Land's net asset value was S$0.85 per share as of December 2024. This meant the original offer represented a 64% discount, prompting calls for a more equitable valuation.
Despite the initial controversy, Lyon Investments had already secured acceptances for nearly 24% of Sinarmas Land's outstanding shares, bringing its total holdings to about 94%. With this level of control, the Widjaja family plans to delist Sinarmas Land from the Singapore Exchange.
Sinarmas Land is renowned for its portfolio of prime office buildings in Jakarta, including the 48-story Sinarmas MSIG Tower. The company also has properties in Australia, China, Malaysia, Singapore, and the UK.
The offer's closing date has been extended to May 29, providing shareholders additional time to consider the revised proposal.