PAG launches $671 mln unsolicited takeover bid for Spring REIT

Spring Real Estate Investment Trust

26/09/2018 06:46

HONG KONG, Sept 26 (Reuters) - Hong Kong-based private
equity group PAG said on Wednesday a unit of the firm had
launched a HK$5.24 billion ($671 million) unsolicited takeover
bid for Spring Real Estate Investment Trust (REIT)  1426.HK .
    PAG's offer of HK$4.85 for each unit of Spring REIT
represented a 61.7 percent premium over its closing price of
HK$3.00 on Monday, it said in a statement. Hong Kong markets
were closed on Tuesday for a public holiday. 
    PAG's bid for Spring REIT would value the company at $780
million, and is the latest in a long battle between the two.
    "The Offeror believes that it is necessary to replace Spring
REIT's existing Manager and conduct a strategic review to
address Spring REIT's continued under-performance," the PAG
statement said.
    Spring REIT, whose shares jumped more than 30 percent on
Wednesday, did not immediately respond to a request for comment.
    ($1 = 7.8144 Hong Kong dollars)

 (Reporting by Alun John; Editing by Stephen Coates)
 ((Alun.John@thomsonreuters.com; +852-28415827;))