OUE Realty pares stake in OUEHT through married trade

Singapore

THE mystery behind the block trades done in OUE Hospitality Trust (OUEHT), driving up its trading volume last Friday, is only partially solved. OUE Realty, the holding company of the trust's sponsor OUE Limited, disclosed on Tuesday evening that it had on Sept 2 disposed 64,752,176 stapled securities in the trust "through married trade to an independent third party", paring its stake from 40.1 per cent to 36.48 per cent. But it is not known who the buyer is. As a result of the disposal, OUE Realty has a direct interest in 19 million units (1.06 per cent) and deemed interest of 633.2 million units (35.42 units). It was the direct stake that it pared. When contacted, both OUE and OUEHT said they were not aware who the buyer was, or what the rationale for the stake disposal was.

OUE Realty had to make the disclosure because as a substantial shareholder in the trust, it was obliged to disclose changes in its shareholding, but it does not have to disclose the parties it transacted with. OUE Realty landed up with its direct stake in the trust through OUE Limited's distribution in specie of OUEHT units to its shareholders back in 2014.