KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) has announced the cancellation of its upcoming unitholders’ extraordinary general meeting (EGM), which was originally scheduled for Nov 16.
The cancelled meeting was called to seek unitholders’ approval for the proposed acquisition of leasehold interest in part of a land in Setapak, together with the existing buildings and a new one to be constructed there, comprising of an international and private school known as KYS KL East International School from KYS College Sdn Bhd (KCSB).
The transaction carries a purchase consideration of RM125 million, to be satisfied via a cash payment of RM106.55 million alongside the allotment and issuance of new ordinary units in Hektar REIT valued at RM18.45 million.
The cancellation stems from unresolved conditions tied to the deal’s sale and purchase agreement (SPA).
Following an assessment, the REIT manager’s board noted that certain conditions precedent remain outstanding. Consequently, the board requires further clarification from the vendor, KCSB, regarding the progress and status of their fulfillment.
In deciding to cancel the meeting, the board emphasized that the move was made in the best interests of Hektar REIT and its unitholders.
The pause will allow the manager, Hektar Asset Management Sdn Bhd, to seek the necessary clarifications and evaluate any potential implications on the terms or structure of the proposed acquisition and lease.
According to the official document, this approach ensures that the manager can “assess whether any further action or consideration is required, before seeking unitholders’ approval”.
The board believes that delaying the vote will ultimately present unitholders with a more complete and updated position on the acquisition, enabling a more informed decision should a fresh EGM be called.
Despite the delay, the board explicitly clarified that the cancellation of the unitholders’ meeting does not constitute a termination of the SPA or the proposed acquisition and lease.
Hektar Asset Management will continue to monitor the vendor’s progress in fulfilling the outstanding conditions and will make the necessary announcements regarding any material developments, including the decision to convene a fresh unitholders’ meeting when deemed appropriate.