Amara Rides into the Sunset

Amara Holdings has just announced a privatisation offer valuing the hotel group at $515 million.

The takeover consortium is led by Amara’s founder, Albert Teo, alongside property developers Hwa Hong and Wing Tai.

A few years ago, some shareholders voiced their dissatisfaction at the AGM over the company’s languishing share price, which hovered around $0.40 – valuing Amara at under $250 million.

At the time, Amara was one of my fund’s holdings. I stood before hundreds of shareholders to defend the company and its management, arguing that the sum-of-the-parts valuation suggested it was worth much more. I urged shareholders to remain patient.

It’s gratifying to see the valuation more than double since then, though it’s bittersweet to see a venerable name like Amara leave the SGX.