Activist funds opposed to Sabana-ESR merger slam one-proxy rule

Singapore

AHEAD of voting on the controversial merger between Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) and ESR-Reit, the deal's key opponents Quarz Capital Management and Black Crane Capital have raised concerns that the voting process involving custodians and nominee banks may be stacked against their interests.

Activist funds Quarz and Black Crane, which have for months publicly opposed the merger as a "panic-sell" of Sabana Reit at a substantial discount, have written a letter to the Monetary Authority of Singapore (MAS).