In response to the trading halt called earlier this morning, City Developments Limited (CDL) has released a statement stating that the halt was due to a disagreement within the board regarding the composition and constitution of the board and its committees. However, despite the temporary suspension, CDL assures that its business operations remain fully functional and unaffected.
Sherman Kwek will continue to serve as the group CEO until a board resolution is made to change the company’s leadership. The company will provide further updates in line with the Singapore Exchange (SGX) listing rules as the matter is currently under review.
In a later statement, Sherman Kwek expressed disappointment at the extreme actions taken by the chairman and a minority of the CDL board in response to the disagreement over the size and make-up of the board. He reiterated that the focus of the CEO and majority of the directors, with the guidance of legal counsel, has been to improve governance.
CDL’s trading suspension today, in light of the ongoing legal dispute, was not approved by the majority of the board. Sherman Kwek clarified that the issue was never about removing the chairman, but rather to strengthen the board and ensure the company’s high standards of governance and robust decision-making.
CDL released its FY2020 results on Feb 26, but later cancelled its 10am results briefing. CDL also offered to privatize Millennium & Copthorne Hotels New Zealand for $1.72 per share.
Shares in CDL closed at $5.12 before the trading halt.