The extraordinary general meeting (EGM) requisitioned by minority unitholders who hold over 10% of the units in Sabana REIT, will not proceed. The unitholders include activist investor, Quarz Capital Asia, which has a 13.73% stake in the REIT as at March 8.
The unitholders requested for an EGM to be convened via a letter dated March 25. The EGM was to have Sabana REIT’s unitholders consider a total of seven resolutions, including having the REIT’s trustee provide a clear timeline as to when the internalisation of the REIT manager can be completed.
The unitholders, in their March 25 letter, proposed that the EGM be held right after Sabana REIT’s annual general meeting (AGM) some time in April, or have the resolutions tabled at the AGM.
The EGM didn’t happen as the unitholders, via a letter dated April 18, requested to withdraw or modify some of the resolutions proposed.
On May 9, the REIT issued a notice of EGM, which stipulated that the EGM will be held at 5pm on May 24.
On May 13, ESR Group, E-Shang Jupiter Cayman Limited and E-Shang Infinity Cayman Limited filed an application to the high court in Singapore – and against the REIT manager, the REIT trustee and Quarz Capital Asia – to put a temporary halt to the commencing of the EGM. The high court ordered that the EGM should not proceed. It also ordered the manager to issue a notice of the postponed meeting by June 6 unless the unitholders withdraw their requisition.
See also: Paragon REIT to divest 85%-owned Figtree Grove Shopping Centre in Australia at 4.9% above valuation
On May 29, the same minority unitholders sent another letter requesting to change the resolutions proposed in the requisition notice. The manager, in its June 3 statement, notes that the resolutions proposed are “entirely new and different”. As such, the letter amounts to a withdrawal of the requisition notice and the manager will not be issuing a notice of postponed meeting.
Further to its statement, the manager says it is considering the new resolutions proposed and is seeking legal advice. Among the new resolutions proposed in the May 29 letter is the request to clarify “certain dealings with related corporations for the manager”.
Units in Sabana REIT closed 0.5 cents lower or 1.39% down at 35.5 cents on June 3.
