SUBSCRIBERS

Lessons from the failed Sabana-ESR Reit merger

System is stacked against investing in underperforming Reits on the basis of 'value'; better to go for high quality Reits instead

Ben Paul
Published Sun, Dec 6, 2020 · 09:50 PM

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.

Unitholders of Sabana Reit were to have voted on two matters on Dec 4. The first was to amend the trust deed of Sabana Reit to facilitate the merger. The amendments would, among other things, require unitholders to appoint only one …

A NEWSLETTER FOR YOU
Friday, 8.30 am
SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Companies & Markets

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here