MBK Partners' unit offers to buy Accordia Golf Trust's assets for $577 million

SINGAPORE (Reuters) - Japan's Accordia Golf Co. Ltd, part of private equity firm MBK Partners, proposed on Monday to buy out Singapore-listed Accordia Golf Trust's (AGT) ACCO.SI stakes in 88 golf courses in Japan for about 61.8 billion yen ($576.92 million)

Accordia, the sponsor of AGT and holder of 28.85% of AGT’s units, said in a statement that the proposal was 5% above AGT’s adjusted net asset value as of March 31.

Accordia’s CEO Yuko Tashiro said that “despite the difficult current environment,” the company believed that its proposal offered an attractive price.

AGT said in a statement that its trustee-manager had not been able to make any acquisitions since AGT’s listing in Singapore in 2014 and this had affected AGT’s ability to improve its distribution per unit.

AGT said the proposed divestment offered a reasonably attractive option for it to realise the value of its interests and allows unit holders to unlock the value of their units.

AGT’s Singapore IPO had raised about S$760 million in August 2014 after pricing the units at S$0.97 per unit.

AGT said the proposed purchase translated to an implied price of S$0.732 per unit. AGT’s units last traded at S$0.64 before trading was halted on Monday morning.

AGT’s units were trading at S$0.60 in late November just before the company said it had received a non-binding offer for its golf courses.

Citigroup Global Markets Japan Inc. and Citigroup Global Markets Singapore Pte. Ltd. are the financial advisors to Accordia.

($1 = 107.1200 yen)

Reporting by Anshuman Daga; Editing by Kim Coghill