Controversy Arises as Widjaja Family Lifts Sinarmas Land Acquisition Offer in Face of Disapproval from Minority Stockholders
Billionaire Widjaja Family's Sneaky Move Lifts Sinarmas Land Offer Price Amid Backlash
The wealthy Widjaja clan, controlling Lyon Investments in Indonesia, has hiked its offer for Sinarmas Land by a whopping 21% following accusations that the initial bid to seize the Jakarta-based property company was a penny-pinching lowball.
This weekend, Lyon Investments announced a new offer that values Sinarmas Land, known for its prime office buildings such as the towering 48-story Sinarmas MSIG Tower, at around S$1.6 billion ($1.2 billion). The original offer of S$0.31 per share, made in late March, was boosted to S$0.375 each [1][5]. The extended deadline for accepting this offer is now May 29 [1].
Before the price increase, Lyon Investments had snagged valid acceptances equivalent to almost 24% of Sinarmas Land's outstanding shares [1]. This brings their total ownership to approximately 94%. The offer hike follows complaints from the Securities Investors Association (Singapore), which advocates for minority shareholders, stating that the original offer was exploitative, with a staggering 64% discount compared to Sinarmas Land’s net asset value of S$0.85 per share as of December 2024 [2].
Upon the transaction’s completion, the Widjaja family's Lyon Investments plans to kick Sinarmas Land off the Singapore Exchange [2]. Developing Indonesia’s Plaza Thamrin, Sinarmas Land boasts 95,648 square meters of premium office space across three buildings in Jakarta, and properties in Australia, China, Malaysia, Singapore, the U.K., and beyond [2].
Although the Widjaja family boasts a $18.9 billion net worth, ranking them No. 4 on Forbes’ list of Indonesia’s 50 Richest [3], their dealings with Sinarmas Land are generating controversy. Along with real estate, the Sinar Mas group overlaps into mining, paper mills, financial services, telecommunications, and agribusiness [3].
Fine Print:The Widjaja family's initial offer of 31 cents per share was a steep 73.9% discount compared to Sinarmas Land's net asset value (NAV) of S$1.19 as of June 30, 2024 [4]. In response to pushback and delisting conditions, Lyon Investments bumped up their offer price by 21% to 37.5 cents per share on May 10, 2025 [1][5]. The offer increase aimed to ease valuation concerns, potentially improve chances of completing the privatization process, and secure more shareholder acceptances, essential for delisting Sinarmas Land from the Singapore Exchange [2][4]. If all goes as planned, the breach of the free-float requirement due to Lyon Investments' increased stake will warrant the suspension of Sinarmas Land shares trading [2]. Although the revised offer price strengthened shareholder acceptances, specific information regarding the completion date isn't provided in available data.
Additional Info:
- The Widjaja family's critics voice concerns about the clan's wealth accumulation, which is dominated by diversified investments.
- Despite accusations of predatory behavior towards minority shareholders, Sinarmas Land is one of Southeast Asia's largest real estate companies.
- The Widjaja family employs a multi-generational business strategy where they consolidate familial assets into a family office, Lyon Investments, to manage investments.
- The Plaza Thamrin development in Jakarta covers the sites of nine demolished office buildings.
- The Widjaja family, billionaire investors based in Indonesia, initially proposed a steep discount of 73.9% when offering 31 cents per share for Sinarmas Land, a move criticized for its potential exploitation of minority shareholders.
- To alleviate valuation concerns and secure more shareholder acceptances necessary for delisting Sinarmas Land from the Singapore Exchange, the Widjaja family's Lyon Investments subsequently boosted their offer price by 21% to 37.5 cents per share.
- Concurrently, the Widjaja family, prominent in the real-estate, finance, and business industries, plans to invest in Sinarmas Land's prime office buildings, including the towering 48-story Sinarmas MSIG Tower in Jakarta, upon the completion of the transaction.
