ESR attempts to suspend Sabana Reit’s May 24 EGM
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The extraordinary general meeting is to be held by Sabana’s external manager to consider resolutions raised by activist investor Quarz Capital and others.
PHOTO: BT FILE
Michelle Zhu
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SINGAPORE – Sabana Industrial Real Estate Investment Trust’s (Sabana Reit) sponsor ESR Group has filed an application to the High Court of Singapore to hold the Reit’s May 24 extraordinary general meeting (EGM) in abeyance, meaning to impose a temporary suspension of the meeting until some issues are cleared up.
The Reit manager said on May 14 that the postponement would allow for the final disposal of “HC/OA 19/2024” – the originating application, filed by trustee HSBC Institutional Trust Services, seeking a declaration that amendments to the trust deed are required to implement the resolutions approved at 2023’s EGM.
ESR had also sought to block the 2023 meeting, but its application for an interim injunction to do so was dismissed by the High Court.
At that earlier EGM – on Aug 7, 2023 – unit holders of Sabana Reit voted to remove the Reit’s external manager and have Sabana’s trustee internalise the management function.
The May 24 EGM is to be held by Sabana’s external manager to consider resolutions set out by a March 25 requisition letter issued by activist investor Quarz Capital and four other unit holders of the Reit.
The investor group had requisitioned the EGM as it was dissatisfied with what it saw as the trustee’s “apparent lack of clarity or progress on internalisation”, and the amount of costs incurred to date to carry this out.
The resolutions were subsequently revised in an April 18 letter.
As ESR seeks to hold the EGM in abeyance, the manager of Sabana Reit said it will provide further updates on ESR’s application should material developments arise.
ESR has further requested liberty to apply for further directions in respect of the EGM, and for the costs of the court application to be provided.
It also asked for further, or other relief, as the court sees fit.
Units of Sabana Reit closed unchanged at 36 cents on May 14. THE BUSINESS TIMES
