SERVICED apartment operator The Ascott Group’s shareholders should accept an offer from parent CapitaLand of $1.73 apiece for its shares, an independent financial adviser has recommended.
Shareholders ‘who wish to realise their investments’ in Ascott, said PricewaterhouseCoopers Corporate Finance (PwCCF), should either take CapitaLand’s offer or sell the shares on the open market before the offer closes on Feb 26.PwCCF is advising Ascott’s independent directors on the deal. CapitaLand, it noted, has also stated intentions to delist Ascott. If CapitaLand, which already owns two-thirds of Ascott, succeeds in acquiring enough shares to do so, ‘the trading liquidity of the shares would be aversely affected’.
On Jan 8, CapitaLand made a cash offer for shares of Ascott.
The property firm added it did not intend to revise its offer, which gave a 43 per cent premium over Ascott’s then-last traded price of $1.21.
Ascott is the biggest operator of serviced apartments in Asia and Europe, with almost 15,000 units around the world and another 5,000 more under development.
Its share price closed unchanged at $1.72 yesterday.
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