City Developments Limited (CDL) has released a statement in response to the trading halt it called for earlier today. The halt was requested due to a disagreement within the board regarding the composition and constitution of the board and its committees.
CDL clarified that despite the temporary suspension, its business operations remain fully functional and unaffected. Sherman Kwek will continue to serve as the group CEO until there is a resolution from the board to change company leadership.
The company has also stated that further announcements will be made in accordance with the listing rules of the Singapore Exchange (SGX) should there be any significant developments in this matter.
In a subsequent statement, Sherman Kwek expressed disappointment that the chairman and a minority of the CDL board have taken drastic actions due to their disagreement over the size and makeup of the board. He emphasised that the focus of himself and the majority of the board, with the guidance and support of the company and independent legal counsel, has always been to improve governance.
CDL’s trading suspension earlier in the day was a result of this matter being brought before the courts, despite not being authorised by the majority of the board. Sherman Kwek reiterated that this issue was not about removing the chairman from his position, but rather to strengthen the board’s processes and decision-making.
He further stated that the company will not comment on the merits of the case as it is now before the courts for adjudication. CDL will make further announcements if there are any significant developments.
The company also released its FY2020 results on Feb 26, before the market opened. However, it later cancelled its 10am results briefing. CDL has also offered to privatise Millennium & Copthorne Hotels New Zealand for $1.72 per share.
Shares in CDL last traded at $5.12. This article first appeared on [publication name].