Sime Darby explains delay of EGM on Saizen REIT deal

PETALING JAYA: Sime Darby Bhd said the EGM of Saizen Real Estate Investment Trust (Saizen REIT) had not been convened by Dec 31, 2016 as agreed under the implementation agreement, as the transaction process on the reverse takeover is taking longer than expected.
Sime Darby told Bursa Malaysia yesterday that pursuant to the implementation agreement, completion of the properties disposal is subject to the fulfilment of conditions precedent which, among others, include approval from unit holders of Saizen REIT by Dec 31, 2016.
Sime Darby noted that “the parties are progressing with the satisfaction of the various conditions precedent stipulated in the implementation agreement”.
In October last year, Sime Darby entered into the implementation agreement for the disposal of the conglomerate’s properties in Australia and the acquisition of a majority stake in Saizen reit.
The implementation agreement includes the proposal to acquire 80% in Japan Residential Assets Manager Ltd, the manager of Saizen REIT, and the disposal of 20 industrial properties in Queensland and the Northern Territory, Australia, for a total consideration of A$355.8 million (about RM1.12 billion).