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EH-Reit trustee to remove management following MAS notice
THE trustee of Eagle Hospitality Reit's (EH-Reit) manager on Wednesday said that it intends to comply with the Monetary Authority of Singapore's (MAS) direction to remove EH-Reit Management and appoint a new manager.
The new manager will be announced "imminently", it said.
The MAS on Monday issued a Notice of Intention (NOI) to DBS Trustee Limited, following numerous breaches of the Securities and Futures Act (SFA) by EH-Reit Management, and serious concerns over its ability to comply with rules and regulations.
The manager of EH-Reit said on Tuesday that it is working with professional advisers to "assess the implications" of the notice it received from the MAS.
DBS Trustee said it will work closely with the Reit manager's professional advisers in both Singapore and the US for an orderly resolution of the situation.
The NOI does not adversely impact the Request for Proposal (RFP) process and ongoing efforts of the trustee and EH-Reit's professional advisers to manage the situation, it added.
Since the submission of RFP proposals on Aug 31, the trustee and its financial adviser Moelis have assessed the diverse proposals received, and interested bidders have also had the opportunity to refine their proposals after feedback.
"The selection of the final candidate will be announced imminently and is expected to be the replacement manager for EH-Reit as well, subject to the necessary approvals," it said.
The selected candidate should be one that is focused on the long-term rehabilitation of EH-Reit and has a key interest in resolving the current situation for the long-term benefit of stapled security holders, it said. The selected candidate's objectives are also to be aligned.
Further information on this process will be announced in due course.
The trustee remains committed to act in the best interests of the stapled security holders and will provide further updates if and when there are material developments on this matter, it said.
Trading in Eagle Hospitality Trust stapled securities, comprising EH-Reit and Eagle Hospitality Business Trust, were voluntarily suspended on March 24, after the manager defaulted on a loan of US$341 million.