UNITHOLDERS of Sabana Industrial Real Estate Investment Trust (Sabana Reit) voted to remove Sabana Real Estate Investment Management (SREIM) as its manager at its extraordinary general meeting (EGM) on Monday (Aug 7).

 

&ldquo Shareholders have the right to ask and understand the actions taken by the board and the company regarding the provision of an exit offer,&rdquo says Sias president and chief executive David Gerald

 

AHEAD of an extraordinary general meeting (EGM) on Friday (Jun 30) for shareholders to vote on Nico Steel&rsquo s proposal to delist without an exit offer, the Securities Investors Association (Singapore), or Sias, said that it has &ldquo yet to receive a reply&rdquo to questions raised on behalf of shareholders.

 

In a letter to the chairman and board of Nico Steel on Thursday, Sias president and chief executive David Gerald said that the investor rights advocate had been approached by &ldquo some concerned shareholders&rdquo .

 

On Jun 23, Sias sent questions to Nico Steel about their annual report.

 

Among other things, Sias asked about efforts that Nico Steel&rsquo s independent directors (IDs) took to prepare the company to make an exit offer, after receiving the notification of delisting by the Singapore Exchange (SGX).

 

Sias asked if the IDs had considered a sale and leaseback of the group&rsquo s Loyang property, to monetise its assets and put the company &ldquo in a position to make an exit offer which would not significantly and adversely affect the company&rsquo s operations&rdquo .

 

Nico Steel&rsquo s board had disclosed that the group&rsquo s net tangible assets stood at US$16.7 million as at November 2021 and US$16.1 million as at February 2023, noted Sias.

 

It added that the group was in a net cash position, with cash and cash equivalents of as high as US$5 million in February 2019.

 

Given that a voluntary winding-up resolution is an option available to shareholders, Sias also asked whether the IDs had considered putting that resolution to a vote at the EGM.

 

&ldquo Shareholders have the right to ask and understand the actions taken by the board and the company regarding the provision of an exit offer,&rdquo Gerald said in the letter. &ldquo It is crucial to know why such measures were not pursued, leading to the proposed delisting without an exit offer.&rdquo

 

He pointed out that &ldquo about 1,400 shareholders will be negatively affected&rdquo .

 

Gerald noted: &ldquo Sias and your shareholders hope that the board and the management will address these questions during the EGM and subsequently publish their responses on SGXNet for the benefit of all shareholders.&rdquo