[sgbuffett]

Under the offer, SPH shareholders will receive 66.8 cents in cash per share, as well as 0.596 Keppel Reit units and 0.782 SPH Reit units per share.

Keppel Reits = 1.12
SPH reits = 0.89

Total value of takeover = 0.667+ 1.12x 0.596 + 0.89 x 0.782
=  $2.03

Stock is now $1.92

A 5.7% gap.

Holding period is 3-6months.

Risk 1 : Takeover voted down Risk 2: The reits fall in price.

Risk 1 is very low chance as takeover is beneficial as Keppel stand to make $600M with Conservative valuation of SPH assets is at least $2.50

Risk 2 is possible but if you are buying reits anyway you are getting these at a 5.7% discount which is attractive.