On July 7, Sabana Industrial REIT's manager announced that ESR Group, which holds 20.4% o Sabana REIT, filed an injunction in the High Court to restrain the manager from holding an EGM.
On June 7, Quarz Capital Asia had requisitioned an EGM to be held on Aug 4. In the June 7 requisition, resolution 1 is to vote out the external manager; resolution 2 is to "effect the internalisation of the REIT Management function". Analysts have indicated that details on the implementation of a new internal manager are unclear.
Quarz holds 14.01% of Sabana REIT. Switzerland-based Volare, which made a partial offer for Sabana REIT, holds a tad above 16%.
Both Quarz and Volare voted together against providing Sabana REIT's manager with a general mandate, and against endorsing an independent director at an AGM held in April.
ESR Group says it is gravely concerned about the requisition. "We have been compelled to commence proceedings in Court to seek a swift and decisive determination.
"We have taken these steps so that clarity can be provided to unitholders and to ensure the proper processes are followed in line with unitholders’ expectations and the terms of the Trust Deed.
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"All unitholders must be placed in a position to make a considered and informed decision based on true and accurate facts. As this is an ongoing legal matter, we cannot provide any further comments.”
The Interim Injunction Application is scheduled for hearing before the High Court on July 11.
