Lessons from the failed Sabana-ESR Reit merger

THE controversial proposed merger of Sabana Shari'ah Compliant Real Estate Investment Trust (Sabana Reit) and ESR-Reit came to an end this past week, but not in the manner most market watchers expected.

As the meetings for unitholders to vote on the deal approached, it looked like the transaction would go through despite the efforts of a small but organised group of dissident investors at Sabana Reit.

At that eleventh hour, the opponents to the deal were not just worried they might fail to muster sufficient support from their fellow unitholders to thwart the merger but also that the deal might take place even if they did.