A framework agreement involving Malaysian conglomerate Sime Darby, and its Australian subsidiary Hastings Deering to acquire a majority stake in Singapore-listed Saizen REIT though a reverse takeover has lapsed.
Under the framework agreement, Saizen REIT was to acquire Hastings Deering's industrial properties in Australia. In return, new units of Saizen REIT will be issued to Sime Darby's subsidiary in Singapore, Sime Darby Property Singapore Limited, as part of the reverse takeover arrangement.
In a filing with Bursa Malaysia on 4 October, Sime Darby stated that the framework agreement lapsed after definitive agreements for the properties' disposal were not entered into as of the long-stop date of 30 September 2016.
However an earlier filing with the Singapore Exchange by Saizen REIT indicate that it may still continue with negotiations once all parties are able to resolve "outstanding matters", without going into specifics.
The REIT advised unitholders to exercise caution in dealing or trading their units in Saizen REIT. “There is no assurance that the parties will be able to enter into any definitive agreements in relation to the properties acquisition,” it said.
Units of Saizen REIT are currently listed on the Singapore Exchange at SGD0.046.