Wheelock Properties and 68 Holdings, a company owned by Ong Beng Seng, is making a mandatory cash offer to buy Hotel Properties Limited (HPL) for $3.50 a share.

The offer price represents a 11.82% premium to HPL's last traded price on April 11. The offer follows 68 Holding's agreement on Monday to buy a total of 213.98 million HPL shares, representing a 41.91% stake at $3.50 each.

It will buy an 18.44% stake from Ong Beng Seng (OBS), Reef Holdings Pte Ltd and Como Holdings Inc., both of which are companies controlled by OBS. Another 0.32% will be acquired from Christina Ong, wife of hotelier Ong.