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Sime Darby Property Singapore’s reverse takeover (RTO) of Saizen Real Estate Investment Trust (Saizen REIT) has been delayed, according to an SGX filing.
In October 2016, Sime Darby and the trust manager, Japan Residential Assets Manager Limited, signed an implementation agreement. Under this deal, Sime Darby will sell and inject 20 industrial properties in Queensland and the Northern Territory in Australia into the REIT in exchange for around A$73.22 million (S$76.09 million) in cash and A$282.58 million (S$293.65) in REIT units.
The RTO transaction also includes the acquisition of an 80 percent stake in the trust manager. If completed, it will constitute a “very substantial acquisition” or a “reverse takeover” as defined under Chapter 10 of the listing manual of the Singapore stock exchange. However, it requires the consent of the REIT’s shareholders, which has not yet been obtained.
“Pursuant to the implementation agreement, completion of the proposed RTO transaction is subject to the fulfilment of conditions, including receipt of approval from unitholders at an extraordinary general meeting (EGM) to be convened by 31 December 2016,” said Saizen REIT in a statement.
“As disclosed in an announcement dated 10 November 2016, the transaction process is taking a longer time than originally envisaged. As a result, the EGM has not been convened as at the date of this announcement.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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