SGX RegCo queries EHT on restructuring process and progress of strategic review

Published Wed, May 27, 2020 · 01:10 PM

THE Singapore Exchange Regulation (SGX RegCo) on Wednesday night asked Eagle Hospitality Trust (EHT) for updates and to justify the actions that its Special Committee has taken in relation to the restructuring and the strategic review of the business.

EHT is expected to provide an outline of proposals that have been made known to the Special Committee, as well as disclose the conflicts of interest (if any) that arose during the proposal management process; and if there were conflicts, EHT is also to explain how these were managed. EHT also has to disclose the proposals (if any) that contemplated a change in control of the Reit manager.

The Special Committee of directors was set up in April to focus on "safeguarding value for and protecting the interests of" EHT's stapled security holders. The committee was supposed to oversee matters relating to the strategic review and its voluntary trading suspension.

SGX RegCo is also requesting that EHT's Reit manager and trustee manager confirm that they gave priority to the interests of all unitholders of EHT as a whole, over their own in the proposal management process, and that they selected the proposal that they say is in the best interest of the unit holders of the stapled trust.

This week, it was announced that Howard Wu and Taylor Woods had stepped down from the boards of EHT's managers. Mr Wu was the non-executive chairman, and Mr Woods, the non-executive deputy chairman and member of the nominating and remuneration committee. They were both appointed to the boards in August 2018, and are the founders of EHT's sponsor and master lessee Urban Commons.

Trading in EHT stapled securities has been suspended since March 24.