In a press release on Nov 20, the board of Sabana REIT’s manager reiterated that the proposed merger between ESR-REIT and Sabana REIT is the only offer that is currently on the table.With an extraordinary general meeting (EGM) due in two weeks’ time, it noted that the merger process has entered a critical stage. Some unitholders have already voted and others are about to do so. “This is no longer an open season where parties can issue unsubstantiated statements and proposals that are not workable. Words have consequences,” the Board warned.

The Board added that activist fund managers are within their rights to oppose the merger and to criticise the Sabana Manager and the Board, but in the interest of unitholders, they should substantiate their claims or provide more details so that the management team and unitholders can carry out a serious analysis of their claims and proposals. 

Both Quarz Capital and Black Crane have written open letters opposing the merger, including making known their intention to requisition an EGM to vote for the manager’s removal and for an internalisation resolution. Unlike the trust scheme proposed for the merger by Sabana REIT’s manager where its sponsor and major unitholders cannot vote, all unitholders can vote for a resolution tabling the removal of the manager. ESR Cayman holds a shade under 21%, Tong Jinquan holds 4.72%, and the likes of UBS, Blackrock and Vanguard hold 5%, 4.98% and 2.72% respectively. Quarz Capital and Black Crane together hold 11%.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook