Shareholders of St James approve reverse takeover, News, News, AsiaOne Business News

Shareholders of St James approve reverse takeover, News, News, AsiaOne Business News:

Rennie Whang

The Straits Times

Monday, Oct 13, 2014

Shareholders of entertainment firm St James Holdings have overwhelmingly approved a $1.56 billion proposed reverse takeover of their company by Perennial Real Estate Holdings (PREH).



All 18 resolutions put to investors at yesterday's extraordinary general meeting were backed, with more than 99 per cent in favour.



St James Holdings chief executive Dennis Foo said after the meeting: "We are pleased with the strong support... (for the transaction) to transform the company into a sizeable real estate developer, owner and manager.



"Our objective to preserve and enhance shareholders' value has been achieved through this restructuring exercise."



In the first phase of the transaction, Perennial and other vendors will inject unlisted property assets into St James for $1.56 billion, which will be raised by issuing new shares.



Once this stage is completed - estimated to be around Oct 27 - St James will be renamed Perennial Real Estate Holdings Limited and transferred from the Catalist to the mainboard. It will operate as a property developer with assets here and in China.



Investors also backed a move yesterday to privatise St James' existing entertainment business, which has been hit by a challenging business environment and rising operating costs. All its 13 bars and clubs here, including Peppermint Park, Mono and mandopop club Shanghai Dolly at Clarke Quay, will be sold to CityBar Holdings and taken private.



The second phase involves a share swap for the remaining units of the PREH-sponsored business trust Perennial China Retail Trust. The units will be swapped for 70 cents apiece for new shares in Perennial Real Estate Holdings Limited.



PREH's holdings include Chijmes, TripleOne Somerset and Capitol Singapore here and 11 Chinese assets such as the Beijing Tongzhou Integrated Development and large-scale projects connected to high-speed rail stations in Xian and Chengdu.



PREH vice-chairman and president Pua Seck Guan said yesterday that the new firm will have a net asset value of about $1.9 billion and be a "dominant commercial developer... expected to provide shareholders with growth and (a) steady income stream from its China and Singapore assets".





This article was first published on Oct 11, 2014.

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