Gordon and Celine Tang Clinch Chip Eng Seng Buyout as Acceptances Surpass 90%

After two deadline extensions, Gordon and Celine Tang have hit the magic number in their take-private bid for Singapore-listed Chip Eng Seng, with the mainland money managers securing acceptances from more than 90 percent of the builder’s shareholders by the time of the offer’s closing on Thursday.

The property power couple’s Tang Dynasty investment vehicle and its concert parties, together with other committed shareholders, now account for 91.27 percent of issued shares in Chip Eng Seng, according to a filing with the Singapore Exchange.

Clearing the 90 percent hurdle frees the Tangs to acquire the 60-year-old developer for S$0.75 per share in an all-cash deal valuing the company at S$589 million ($440 million).

Chip Eng Seng’s delisting will be the second privatisation effected by the Tangs in just over a year after the husband-and-wife team took full control of local builder SingHaiyi Group in January 2022 through a S$493 million buyout deal.

Third Time Lucky

The latest win for the Tangs comes after the couple twice delayed the closing date of their offer, first from 19 January to 2 February and then to 16 February.

The pair’s initial offer of S$0.72 per share, announced last November, was bumped to S$0.75 per share in a final offer declared in December.

The Tangs, whose buyout offer was issued by financial advisor United Overseas Bank, pointed to the gloomy investment climate in deciding to privatise Chip Eng Seng — a local firm that started as a subcontractor in the 1960s and has since grown to be a regional developer with commercial, hospitality and residential assets across its home country, Australia and New Zealand.

The couple described a “challenging environment” in Singapore driven by rising interest rates, skyrocketing inflation and the ongoing impact of the COVID pandemic, as well as persistent geopolitical tensions in pushing for the buyout.

Peace Mansion Progress

The Tangs — whose prior dealings include ties to George W Bush’s brother Neil and former Thai prime minister Yingluck Shinawatra — have made a splash in the Lion City’s property market through acquisitions such as their purchase of a stake in the S$1.7 billion redevelopment project at 8 Shenton Way in April.

The venture brings together local developer Perennial Holdings, mainland tech giant Alibaba and others in building the next tallest tower in the city-state, with Chip Eng Seng playing a leading role in that investment.

In December 2021, Chip Eng Seng, SingHaiyi and Haiyi Group joined forces to purchase the Peace Mansion mixed-use project in District 9 for S$650 million, with plans to convert the ageing complex into a combined commercial and residential development.

Chip Eng Seng announced Thursday that the Peace Mansion partners have entered an agreement to obtain a S$835.7 million loan from a syndicate of DBS Bank, OCBC and Bank of China. The proceeds from the borrowings will be applied towards financing the acquisition of the property, the payment of the land betterment charge, construction costs and professional fees.

The JV partners also appointed subsidiaries of Chip Eng Seng and SingHaiyi to perform administrative and property management services related to the Peace Mansion project.