Hong Kong’s PAG launches $671 mln takeover bid for Spring REIT

Hong Kong-based private equity group PAG's a unit has launched a 5.24 billion Hong Kong dollars ($671 million) unsolicited takeover bid for Spring Real Estate Investment Trust (REIT).

PAG's offer of $3.5 for each unit of Spring REIT represented a 61.7 percent premium over its closing price of $2.2. PAG's bid for Spring REIT would value the company at $780 million.

The announcement, which could be the latest in a string of private equity-backed mergers and acquisitions deals in Asia this year, sent Spring REIT’s shares up to more than 30 percent.

PAG said in a statement that it is necessary to replace Spring REIT’s existing manager and conduct a strategic review to address Spring REIT’s performance.