The proposed acquisition of all of ARA Asset Management's shares by a consortium of parties received approval from the court March 31, satisfying one of the conditions set for the approval of the privatization proposal.
In addition, the company said the condition to the books closure date, which is scheduled for April 10 at 5 p.m., has been satisfied.
The company's three controlling shareholders — JL Investment Group Ltd., The Straits Trading Co. Ltd. and Cheung Kong Property Holdings Ltd. — had earlier agreed with Warburg Pincus LLC and AVIC Trust Co. Ltd. to form a new vehicle, Athena Investment Co. (Cayman) Ltd., to privatize ARA for S$1.78 per scheme share. Later, on Feb. 28, the company published a scheme document, which provided details on the proposed acquisition.
Following the approval of the proposal, JL Investment, along with the affiliates of Cheung Kong Property and The Straits Trading, will transfer their rollover shares in ARA to Athena Investment at a value equal to the consideration price. In return, the affiliates will receive a combination of cash and shares in Athena Investment. Following the acquisition, Athena Investment will own an aggregate 48.8% effective stake in ARA.
Should the scheme take effect April 11, the company anticipates the transfer and payment of the scheme shares by April 21, following which ARA's shares are expected to be delisted from the Singapore stock exchange.
DBS Bank Ltd. and Goldman Sachs (Singapore) Pte. are the joint financial advisers to the consortium.
As of March 31, US$1 was equivalent to 1.40 Singapore dollars.