Knight Frank Buy Back Remaining 55 Stake Knight Frank Singapore Af Global 3689 Mil
Knight Frank LLP, through its subsidiary Knight Frank Asia Pacific, has announced its acquisition of the remaining 55% stake in Knight Frank Singapore from Singapore-listed AF Global for $36.89 million. This move will see Knight Frank Asia Pacific taking full control of Knight Frank Pte Ltd (KFSG), a leading real estate consultancy firm in Singapore.
In its announcement to the Singapore Exchange (SGX) on Oct 8, AF Global shared that it plans to sell its shares in KFSG, which make up the 55% stake in the company. The shares, held by its wholly-owned subsidiary Cheong Hock Chye & Co, will be sold to Knight Frank Asia Pacific, which already holds the remaining 45% stake in KFSG.
According to the announcement, AF Global and Knight Frank have entered into a non-binding head of terms, granting the latter exclusivity to conduct due diligence and evaluate the sale. The deal is subject to the results of the due diligence being satisfactory, and Knight Frank has paid a $150,000 exclusivity fee pursuant to the head of terms.
KFSG’s subsidiaries include Knight Frank Property & Facilities Management and KF Property Network, offering a comprehensive range of real estate services such as leasing, auctions, investment sales, retail planning and consultancy, office advisory, property asset management, valuation and consultancy, and research. They also have a team that actively markets overseas developments.
Based on the unaudited consolidated financial statements for the six months ended June 30, the book value and net tangible asset value of the sale shares is approximately $33.326 million. AF Global is expected to make a gain of approximately $3.435 million from the proposed disposal, after costs and expenses have been taken into account.
In its SGX announcement, AF Global states that the proposed disposal will allow it to exit a legacy investment that is not part of its main business in the hospitality sector. The company currently operates a hotel in Thailand and serviced residences in Vietnam and Laos. Furthermore, they have no involvement in the operations of KFSG Group, which is run separately and independently by its own management team.
The announcement by AF Global coincides with a separate proposal to take the company private. A consortium led by Aspial and JK Global Investment, an entity owned by Fragrance Group chairman and CEO Koh Wee Meng, has put forward a bid to acquire all of AF Global’s shares at 11 cents each, through a scheme of arrangement. If approved, the consortium intends to delist AF Global.
In a separate SGX announcement, AF Global shared that the proposed privatisation will give the consortium and their management more flexibility to manage their business and optimise their capital resources, without the costs and regulations associated with being listed on the SGX.
Aspial currently holds a 41.75% stake in AF Global, with 440.7 million shares, while Koh holds 326.3 million shares, or 30.91% of AF Global.
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The larger Sembawang and Yishun areas are well-equipped with various shopping options, including prominent malls like Northpoint City
The move to acquire full control of KFSG aligns with Knight Frank Asia Pacific’s strategy to expand its presence in the Asia Pacific region. The proposed privatisation of AF Global will allow the company to focus solely on its core business in the hospitality sector.