Good news for Accordia Golf Trust (AGT) (SGX:ADQU) unitholders as its sponsor, Accordia Golf Co., Ltd., has offered to buy all of its 88 golf courses at a price that’s equivalent to S$0.732 per unit. This is a 5.1% premium to the net asset value of Accordia Golf Trust.
What it means for unitholders
The Trustee-Manager has stated its intention to distribute the proceeds to the unitholders after deducting the fees.
There will be an approximate 0.5% of the purchase price to be paid to the Trustee-Manager as a break fee as they no longer need to manage the Trust anymore. This is like a ‘retrenchment’ benefit.
There are other costs and expenses that would comprise up to 2.5% of the purchase price.