City Developments Limited (CDL) has released a statement in response to the trading halt that was called for earlier this morning due to a disagreement within the board regarding its composition and constitution. Despite the temporary suspension, CDL assures that its business operations are still functioning as normal. Sherman Kwek, the group CEO, will continue to serve in this role until a board resolution is made to change the company’s leadership.
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CDL has stated that it will make further announcements in accordance with Singapore Exchange (SGX) listing rules as the matter is currently under review. In a subsequent statement, Sherman Kwek expressed his disappointment with the chairman and a minority of the board for taking such extreme actions regarding the disagreement over the size and make-up of the board. He emphasized that the focus of the CEO and directors, with the support of company and independent legal counsel, has always been to enhance governance.
The trading halt imposed on CDL earlier today is a result of this disagreement being brought before the courts, despite the majority of the board not authorizing such legal action. Sherman Kwek reiterated that the goal of strengthening the board was never to oust the esteemed chairman, but rather to ensure that CDL maintains its reputation for high standards of governance and robust decision-making. As the case is now in court, CDL will refrain from commenting on its merits and will provide further updates if significant developments arise.
On Feb 26, before the market opened, CDL announced its financial results for the fiscal year ending Dec 31, 2024. The company later cancelled its scheduled 10am results briefing. CDL also made an offer to privatize Millennium & Copthorne Hotels New Zealand for $1.72 per share. CDL’s shares were last traded at $5.12.