CDL responds to trading halt, cites disagreement within board
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In response to the recent trading halt, 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. CDL reassured that their business operations remain fully functional despite the temporary suspension.
According to the statement released on Feb 26, Sherman Kwek will continue to serve as the group CEO until a board resolution is made to change the company’s leadership. The company also mentioned that any material developments in this matter will be announced in accordance with the Singapore Exchange Listing Rules.
In a later statement, Sherman Kwek expressed his disappointment regarding the chairman’s decision to take extreme actions in response to the disagreement. He clarified that the focus of the CEO and directors has always been to improve governance with guidance and support from independent legal counsel.
The trading suspension earlier today was initiated by the minority of the board, despite not being authorized by the majority. Sherman Kwek emphasized that this issue is not about removing the chairman, but about strengthening the board’s decision-making process to maintain the company’s high standards of governance.
CDL announced its FY2024 results on Feb 26 and canceled its results briefing at 10am. The company’s shares last traded at $5.12 and it was reported that CDL offered to privatize Millennium & Copthorne Hotels New Zealand for $1.72 per share.
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