Sabana Reit unitholders resubmit EGM request after previous one fell through
A GROUP of unitholders looking to convene another extraordinary general meeting (EGM) related to the internalisation of ’s (Sabana Reit) manager has resubmitted the requisition notice.
The notice, which came from several unitholders with an aggregate unitholding of more than 10 per cent, was deposited at the manager’s office on Thursday (Jan 11).
The Reit’s manager said on Friday that it is seeking legal advice.
The committee of requisitioning unitholders, who call themselves the Sabana Growth Internalisation Committee (SGIC), is led by activist investor Quarz Capital.
They are looking to pass 12 resolutions at the EGM to direct the trustee on the internalisation of the Reit manager.
These resolutions include setting out a timeline for the Reit’s trustee to consider and adopt, and for the trustee to provide written updates on the internalisation process every two weeks.
SGIC is also suggesting a maximum price of S$10 million to acquire the existing external manager within a month of the EGM, and is seeking to notify the trustee that “unitholders reject any proposal to acquire the existing Reit manager directly or indirectly for a maximum all-in offer price exceeding S$10 million”.
Furthermore, it wants the trustee to form a committee comprising at least five individuals to oversee the internalisation process, of which at least two should be proposed by SGIC.
On Jan 8, the manager said that it would not convene the EGM as the previous notice, submitted on Dec 21, did not comply with the requirements of the trust deed constituting Sabana Reit and the Companies Act 1967. But the manager said it would consider any requisition notice that is properly submitted.
The manager said it was unable to verify “Sabana Growth Internalisation Committee” as a unitholder, and that it does not have records of the notice being deposited at its registered office.
Sabana Reit units were trading 1.3 per cent or S$0.005 higher at S$0.40 as at 1.47 pm on Friday.
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