Shares of Singapore-listed Allgreen Properties (AGRN.SI) jumped 37.4% on Tuesday after Brookvale, a firm linked to Malaysian tycoon Robert Kuok, offered to take the company private in a transaction that values the property firm at $2.54 billion.
At 9:01 a.m., Allgreen shares were traded at $1.58 with over 3.6 million shares changing hands.
Brookvale will pay $1.60 per Allgreen share, or 39% more than Allgreen’s last traded price of $1.15 on Friday. The offer price is also about 20% above Allgreen’s highest traded price in the past three years.
“Overall, we see this as a win-win proposition,” said CIMB Research.
CIMB, which upgraded Allgreen to outperform from underperform following the takeover bid, said the offer was compelling at 0.96 times the company’s price-to-book value.
The company had a price-to-book of 0.71 times before the offer, according to Thomson Reuters data.
