Saizen Reit to be liquidated after proposed RTO falls through

THE transaction process on a proposed reverse takeover (RTO) deal between Saizen Real Estate Investment Trust (Reit) and Sime Darby Property Singapore that has been brewing since August 2016 has fallen through and the Reit will be liquidated.

Saizen Reit's manager, Japan Residential Assets Manager Limited, on Friday said in a filing to the bourse operator that "it is not possible to complete the proposed RTO transaction by the long stop date of the implementation agreement, being March 31, 2017".

Following further discussions between the manager and Sime Darby Property Singapore, the proposed RTO will not proceed, the manager said.

"The manager will commence liquidation proceedings for Saizen Reit upon the mutual termination of the implementation agreement, and will make relevant announcements to keep unitholders updated as appropriate on next steps," the manager added.

It urged unitholders to exercise caution in the dealing or trading of shares of the Reit.