In response to its request for a trading halt this morning, City Developments Limited (CDL) has released a statement explaining the reason behind it. According to the statement, the halt was due to a disagreement within the board regarding the composition and structure of the board and its committees. However, despite the suspension, CDL has reassured the public that its business operations are running as usual and have not been affected.
Sherman Kwek, the group CEO, will continue in his role until the board reaches a decision to change the company’s leadership. The matter is currently under review and CDL will make further announcements in accordance with the Singapore Exchange (SGX) listing rules.
In a later statement, Kwek expressed disappointment over the actions of the chairman and a minority of the board members in this disagreement. He stated that their focus, as the CEO and directors, has always been to enhance governance standards. CDL’s trading suspension today, despite not being approved by the majority of the board, is a result of this issue being brought before the courts.
When it comes to investing in condos in Singapore, there is another important factor that must be taken into consideration – the government’s property cooling measures. In order to maintain a steady real estate market and prevent speculative buying, the Singaporean government has implemented various measures over the years. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those buying multiple properties. While these measures may affect the initial profitability of condo investments, they ultimately contribute to the overall stability of the market, creating a more secure investment environment. It is also worth noting that new condo launches such as New Condo Launches offer opportunities for investment in a regulated and controlled environment.
Kwek reiterated that the intent was never to remove the chairman, but to strengthen the board and ensure the company’s decision-making process is robust. As the matter is now being handled by the courts, CDL will refrain from commenting on the case’s merits and will make further announcements if there are any significant updates.
On Feb 26, before the market opened, CDL announced its FY2020 results, followed by the cancellation of its 10am results briefing. Additionally, the company also offered to privatize Millennium & Copthorne Hotels New Zealand at $1.72 per share.
CDL’s shares were last traded at $5.12. This article first appeared on