Indirect stakeholder’s winding-up petition of no material impact: Dasin Retail Trust

THE trustee-manager of Dasin Retail Trust said on Thursday night (May 4) that the winding-up petition filed against Sino-Ocean Capital Holding – its indirect shareholder – has not materially affected the day-to-day operations of the trust.

This comes after Bloomberg reported in April that Sino-Ocean Capital was facing a winding-up petition in Hong Kong.

While the trustee-manager had previously received legal advice that there was no need to make an announcement, it has since decided to do so to “provide more transparency in the wider interest of its shareholders”.

Sino-Ocean Capital indirectly holds 70 per cent interest in the trustee-manager through its affiliate New Harvest, and 11.988 per cent of the units in the trust through another subsidiary.

The trustee-manager noted that Sino-Ocean Capital is not required to provide Dasin Retail Trust with additional funds or perform any significant obligations that would be affected by the winding-up petition filed. It was also unaware of any obligations of the trust which may be negatively affected.

“For these reasons and also because the trust does not have any direct ties with Sino-Ocean Capital, the board has not undertaken any litigation checks with respect to Sino-Ocean Capital, nor has the board sought its comments on its financial position,” the trustee-manager added.

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The trustee-manager reported that director Zhang Zhencheng on May 2 sought to terminate the shareholders’ agreement between Zhang, the trustee-manager, and its shareholders New Harvest and Shun Fung Investment, on the basis that the winding up petition filed against Sino-Ocean Capital is a default event under the shareholders’ agreement.

The trustee-manager said it would make further announcements on the bourse in the event of any material developments.

When the market opened on Friday, units of Dasin Retail Trust traded 0.8 per cent or S$0.001 lower at S$0.118 as at 9.17 am.