By Trend News Line 2024-05-13 10:59:46.
ESR Group Faces Potential Take-Private Bid
In a surprising turn of events, Hong Kong-listed real estate fund manager ESR Group has halted trading in its shares amidst rumours of a potential take-private bid. According to sources familiar with the matter, a group of investors led by Starwood Capital Group, including U.S. private equity firm Warburg Pincus LLC, is considering a buyout of ESR.
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Trading Halted Pending Announcement
ESR announced the halt in trading through a stock exchange filing, citing the need to disclose inside information in accordance with the Hong Kong code on takeovers and mergers. The company’s shares closed at HK$10 on Friday, reaching their highest point since March 4 and reflecting a market cap of $5.4 billion.
Early Stage Discussions Underway
Although Bloomberg initially reported the potential take-private bid, sources indicate that discussions are still at an early stage, with final terms yet to be agreed upon. ESR declined to provide further comment beyond their filing, while Starwood Capital has remained silent on the matter.
ESR’s Public Journey
ESR, which manages a variety of property-focused funds and investments, went public in Hong Kong in 2019 after pricing its initial public offering at HK$16.8 per share. The company has seen a 7.4% decrease in share value this year, contrasting with a 12% rise in the benchmark Hang Seng Index.
Starwood Capital’s Global Reach
Headquartered in Miami, Florida, Starwood Capital has a long-standing history in the global real estate sector. With over $75 billion of capital raised since its inception in 1991 and $115 billion of assets under management, the firm boasts 16 offices worldwide, including locations in Hong Kong, Tokyo, and Sydney.
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Confidential Sources Speak Out
Sources close to the matter have chosen to remain anonymous due to the confidential nature of the information. However, reports from February indicated that a group of ESR shareholders had been exploring various options, including the potential privatisation of the company.
Awaiting Further Developments
As the situation continues to unfold, investors and industry experts are eagerly awaiting further developments regarding ESR Group’s potential take-private bid. With both ESR and Starwood Capital yet to provide official comments, the financial world remains on edge, anticipating the next steps in this intriguing saga..
– ESR halts trading on potential take-private plan
– ESR halts trading on potential take-private sources say.
