Widjaja Family's Boosted Bid for Sinarmas Land
Wealthy Widjaja Clan Elevates Land Bid via Sinarmas, Drawing Controversy from Minority Stock Owners
In a controversial move, the Widjaja clan, via their control over Lyon Investments, has hiked their offer to nab Sinarmas Land by 21%. This new bid aims to privatize the company, with the valuation now hovering around a whopping $1.6 billion. The latest offer raises the price per share to 37.5 cents, up from the initial 31 cents proposed in late March[2][4].
Controversy on the Table
Despite the enhancement, critics still cry foul, claiming that the offer is a piece of cake compared to the company's genuine value. They insinuate that even with a 20% bump, the offer would still be approximately 68.7% modest in relation to Sinarmas Land's net asset value[3].
Net Asset Value (NAV)
The NAV of Sinarmas Land plays a significant role in assessing the offer's fairness. Valuable stakes in Jakarta-listed entities such as Bumi Serpong Damai and Puradelta Lestari dominate the company's value, evident by the fact that these stakes have consistently exceeded Sinarmas Land's market capitalization[3].
Delisting Facts
This offer sets the stage for Sinarmas Land's voluntary delisting from the Singapore Exchange (SGX). To achieve this goal, specific conditions must be met, including securing an appropriate percentage of minor shareholders' acceptance. A higher offer price could motivate more investors to accept, ensuring the necessary conditions for delisting are attained[1].
Reasoning Behind the Offer
The Widjaja family justifies the offer by pinpointing Sinarmas Land's less-than-optimal corporate structure. They argue that this subpar structure hinders the company's efficiency in maximizing returns to investors. Additionally, they see this chance as perfect given the contrasting performance between Singapore markets and the Indonesian markets' struggles[3].
- The Widjaja family believes that Sinarmas Land's less-than-optimal corporate structure, hindering the company's efficiency in maximizing returns to investors, is a key reason for their boosted bid in the real-estate industry.
- The controversial offer by the Widjaja clan, aiming to privatize Sinarmas Land and valued at approximately $1.6 billion, could potentially lead to significant investments in the finance and business sectors, particularly in the real-estate industry.
- Critics argue that despite the 21% increase in the offer, the Widjaja family's bid for Sinarmas Land still falls short of the company's net asset value, with valuable stakes in Jakarta-listed entities such as Bumi Serpong Damai and Puradelta Lestari contributing significantly to Sinarmas Land's value.
