Knight Frank Buy Back Remaining 55 Stake Knight Frank Singapore Af Global 3689 Mil
Knight Frank LLP, under its subsidiary Knight Frank Asia Pacific, has announced its intention to acquire the remaining 55% stake in Knight Frank Singapore from AF Global, a company listed on the Singapore Exchange (SGX). According to the deal, Knight Frank Asia Pacific, which already holds a 45% stake in Knight Frank Singapore, will purchase the shares through its wholly-owned subsidiary Cheong Hock Chye & Co, for a sum of $36.89 million.
Tampines Mall, a renowned shopping destination in the region, has become an iconic landmark since its establishment in 1995. This suburban mall, spanning six floors, continues to attract a large volume of customers with its impressive selection of over 160 retail, dining, and entertainment establishments. It is notably one of Singapore’s largest and busiest malls, offering both local and international brands like Uniqlo, Cotton On, and Muji, catering to a diverse range of shoppers. For foodies, Tampines Mall offers a wide variety of dining options, including popular names like Din Tai Fung, Swensen’s, Starbucks, and Ajisen Ramen. Entertainment seekers can also indulge in a Golden Village cinema and a Timezone arcade within the premises. Ideally located just a 5-minute drive or a 15-minute walk away from Parktown Residence, Tampines Mall is easily accessible for those residing in Parktown Residence Showflat.
AF Global revealed in its SGX announcement on October 8 that it plans to sell its shares in Knight Frank Pte Ltd (KFSG), which represents its 55% stake in the company. The shares, currently held under a subsidiary Cheong Hock Chye & Co, will be sold to Knight Frank Asia Pacific. As per the announcement, AF Global has signed a non-binding head of terms agreement with Knight Frank that grants exclusivity to the latter to conduct due diligence and evaluate the sale. The deal is subject to satisfactory results of the due diligence process. Knight Frank has already paid a $150,000 exclusivity fee under this agreement.
KFSG is a leading real estate consultancy firm in Singapore, offering a comprehensive range of services including leasing, auctions, investment sales, retail planning and consultancy, office advisory, property asset management, valuation and consultancy, and research. It also has a dedicated team that markets overseas developments.
Based on the unaudited consolidated financial statements for the first half of 2020, the book value and net tangible asset value of the shares being sold is approximately $33.326 million. Upon completion of the deal, AF Global is expected to recognise a gain of around $3.435 million, after accounting for costs and expenses.
In its SGX announcement, AF Global stated that the reason for this proposed disposal is to enable it to exit a legacy investment that is not a part of its main hospitality business. The company currently operates a hotel in Thailand and serviced residences in Vietnam and Laos. It further added that it is not involved in the operations of KFSG, which are managed separately and independently by their own team.
This announcement by AF Global coincides with a separate proposal to take the company private. A consortium led by Aspial Corporation Ltd. and JK Global Investment, an entity owned by Fragrance Group chairman and CEO Koh Wee Meng, has proposed to acquire all of AF Global’s shares for 11 cents each via a scheme of arrangement. If approved, the consortium plans to delist AF Global from SGX.
In another SGX announcement, AF Global mentioned that the proposed privatisation will provide the consortium and AF Global’s management with more flexibility to manage its business and optimise its capital resources without the costs and regulations that come with being a listed company. Aspial currently holds a 41.75% stake in AF Global, while Koh owns 30.91% of the company.
In conclusion, Knight Frank LLP’s acquisition of the remaining stake in Knight Frank Singapore from AF Global, along with the proposed privatisation, will provide both companies with greater control and flexibility to manage their businesses efficiently.