Court dismisses interim injunction sought by ESR to block Sabana Reit EGM
THE Singapore High Court on Tuesday (Jul 11) dismissed ESR Group’s application for an interim injunction to block Sabana Industrial Real Estate Investment Trust’s (Sabana Reit) manager from convening the extraordinary general meeting (EGM) requisitioned by Quarz Capital.
ESR Group, the sponsor of Sabana Reit and ultimate owner of the Reit’s manager, applied for the interim injunction on Jul 7 after filing an originating application to render the EGM “invalid and/or ineffectual”.
The hearing date for the originating application will be scheduled during a case conference on Jul 13, Sabana Reit’s manager said.
“We intend to include Quarz in the application, so that all interested parties’ points can be fully aired. This will ensure that no unnecessary disruption is caused to the Reit by any further public discourse,” ESR Group said.
In response to the dismissal of the interim injunction, Quarz urged the sponsor to “engage in constructive dialogue rather than litigations”.
“The outcome to proceed with the EGM has again affirmed Singapore’s strong legal framework and upholds the key pillar of unitholders’ protection in Singapore which is the right of unitholders to remove a manager by a simple majority vote,” it said.
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The EGM requisitioned by activist investor Quarz Capital is set to take place on Aug 4.
Unitholders will vote on two resolutions – the removal of Reit manager Sabana Real Estate Investment Management and the internalisation of the Reit management function of Sabana Reit.
The manager on Wednesday lifted a trading halt called on Tuesday. The counter last traded at S$0.42 on Jul 11.
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