No certainty that Orchard Towers' potential S$1.6b collective sale will proceed: Hiap Hoe

PROPERTY developer Hiap Hoe, which owns 21 shops and 38 offices at Orchard Towers, has reiterated to its shareholders that there is no certainty that the mixed-use development's intended collective sale will proceed or be completed.

There is also no certainty that the requisite 80 per cent consent from unit owners will be obtained.

"Accordingly, shareholders are advised to exercise caution in dealings with the shares of the company, to read this announcement and any further update announcement(s) released by the company carefully," the mainboard-listed firm noted in a bourse filing after market close.

On Friday (Feb 4) morning, The Business Times reported that the collective sale committee of Orchard Towers had recommended setting the reserve price at S$1.6 billion.

The unit owners will vote on whether to approve the proposed price tag and the method of apportionment of sale proceeds, among other things, at the upcoming extraordinary general meeting on Feb 18.

Before the marketing agent Edmund Tie can launch an en bloc tender, at least 80 per cent of the unit owners will have to agree to the collective sale.

Hiap Hoe said its board will provide further material updates of the en bloc sale at the appropriate time.

Last August, the company's shares had risen sharply in early morning trade, after Hiap Hoe 5JK disclosed that it owned the 59 strata lots in Orchard Towers via its subsidiary Golden Bay Realty.

On Friday, before Hiap Hoe's latest filing, the stock finished unchanged at S$0.64.

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