The long-awaited circular on the options from Eagle Hospitality Trust (EHT) was issued late on Dec 8. Unitholders get to vote on as many as four resolutions. The EGM is on Dec 30, but the last date and time to lodge proxy forms and to pre-register for the EGM is on Dec 27, 2pm. (EHT is a stapled security and comprises a dormant business trust (BT) and a REIT, EH-REIT.)

None of the resolutions are friendly to minority stapled securityholders. The choices are stark. In Resolution 1, EH-REIT’s trustee (which is DBS Trustee) proposes that SCCPRE Hospitality REIT Management, owned by SC Group, be appointed as the new manager.

Resolution 2 is a vote to change the trust deed so that SC Group can get a base fee for FY2021 and FY2022. EHT’s base fee was originally 10% of distributable income, of which there is none. The trust deed changes the base fee to a minimum of US$4.5 million ($6 million) or 10% of distributable income, whichever is higher. Resolution 2 is an extraordinary resolution requiring 75% approval.

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