Eagle Hospitality Trust (EHT) says Hong Kong’s Far East Consortium International Limited (FECIL) will not be proceeding with the proposed acquisition of the controlling stake in EHT’s manager.

According to a filing on July 23, 2020, EHT’s manager says that no definitive agreement had been signed, and that the managers were informed by FECIL that it will not be proceeding with the transaction.

Previously on June 3, EHT announced that FECIL planned to take a 70% stake in its manager. The Hong Kong-listed property company had up to July 14 to complete a deal with Urban Commons, EHT’s sponsor.

See: Hong Kong's Far East Consortium plans to take 70% stake in EHT's manager

Eagle Hospitality Business Trust, the trustee-manager of EHT says it has instructed and directed its financial adviser Moelis to commence an RFP process to seek proposals for EHT on an “expedited basis”.

Under the RFP process, interested parties will have to submit their indication of interest by July 31, 2020. Formal bids will have to be submitted by the end of August.

While there will be no restrictions on parties eligible to participate, the Singapore Exchange Regulation (SGX RegCo) has stipulated that EHT’s former non-executive chairman and deputy chairman Howard Wu and Taylor Woods should not be negotiating with any bidder exclusively.

See also: EHT says sponsors Wu and Woods made deals "prejudicial" to minority unitholdersEagle Hospitality Trust's Wu and Woods to quit following discovery of 'prejudicial' transactions, and Eagle Hospitality Trust to 'cooperate fully' with MAS, CAD investigations; MAS reviewing proposed change of manager