Felicia Tan Mon, Jun 13, 2022
The manager of EC World REIT has entered into a non-binding memorandum of understanding (MOU) with Forchn International to explore the potential divestment of Beigang Logistics Stage 1 and Chongxian Port Logistics.
The potential divestment will be made with an entity controlled or managed by FIPL, a substantial unitholder of EC World REIT and the sole shareholder of the REIT manager.
FIPL is, in turn, wholly-owned by Forchn Holdings, the sponsor of EC World REIT.
The MOU is said to be for the purposes of facilitating negotiations between the parties only.
Under the MOU, the divestment will be completed upon the parties agreeing to the terms of any definitive agreements. The divestment will also be completed should the valuations delivered by independent valuers commissioned by the trustee of the REIT meet the necessary regulatory requirements under the Code on Collective Investment Schemes and the Listing Manual of the SGX-ST.
Unitholders of the REIT will also have to vote in approval of the potential divestment at an extraordinary general meeting (EGM) to be convened.
Units in EC World REIT closed 0.5 cent higher or 0.82% up at 61.5 cents on June 13.