SGX RegCo has issued a “trade with caution” alert on units of Dasin Retail Trust, after observing that an "individual" has been buying up units of the trust to "maintain its unit price".
SGX RegCo, citing its review of trading activity, has noted that Dasin’s closing price has stayed in the 8.9 cents to 9.4 cents range between July 17 and Aug 17.
"The purchasing activity of the individual was particularly unusual and aggressive following negative announcements by Dasin regarding the receipt of notices of demand," says SGX RegCo.
Specifically, on Aug 11, Dasin announced the receipt of a notice of demand dated Aug 4 , issued by Bank of China declaring that events of default had occurred and are continuing under a credit line dubbed Offshore Facility 3.
The total outstanding amounts of $55.6 million and HK$297.6 million under the Offshore Facility 3 as at July 25 plus all additional interest and applicable default interest calculated in accordance with the Offshore Facility 3 until payment is made, plus indemnity obligations arising under the Finance Documents (as defined in the Offshore Facility 3), are immediately due and payable by the Trustee-Manager, according to Dasin's Aug 11 2023 announcement.
Next, on Aug 14, Dasin announced the receipt of a notice of demand dated Aug 10 from Maybank, declaring that one or more events of default has or had occurred and are continuing under another credit line called Offshore Facility 1.
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The outstanding principal sums of US$129.9 million and $234.1 million plus interest (including default interest) of US$6.8 million and $10.8 million as at Aug 10, which shall continue to accrue until full repayment is made, are immediately due and payable by the Trustee-Manager, according to the Aug 14 announcement.
Following the announcements, between Aug 14 and 17, there were 7 instances when the price of Dasin units fell to intraday lows, the individual made purchases that pushed up the unit price, says SGX RegCo.
In particular, when Dasin’s unit price fell to an intraday low of 6.3 cents on Aug 16, the individual made purchases that pushed up the unit price to close at 9.2 cents.
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"Our initial findings suggest that the individual appears to be connected to Dasin," says SGX RegCo.
"SGX RegCo has referred the matter to the authorities for their necessary actions."
Dasin Retail Trust closed at 9.3 cents on Aug 22, before the trade with caution alert was issued.
