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Indiabulls to delist Singapore property trust arm after hiking stake

23 June, 2016

Singapore Exchange Ltd has suspended trading in units of Indiabulls Properties Investment Trust (IPIT), a business trust sponsored by Indiabulls Real Estate (IBREL), for an indefinite period after the public shareholding in the company dropped below the minimum of 10%, as per a stock market disclosure.

IBREL’s indirect wholly-owned subsidiary Grapene Ltd has acquired 54.95% stake in IPIT, which has a portfolio of over 3 million sq ft of completed commercial office space with an equal area under construction as residential space.

As per the applicable provisions under the SGX-ST listing manual, at least l0% of the total number of units should, at all times, be held by the public for the continuity of the trading of units on the bourse.

“Since the number of units held by public unit-holders is over 3% on 22 June 2016, which is less than the unit holding requirement, SGX-ST has informed that the units will be suspended from trading immediately following the close of the offer for an indefinite period of time,” the filing said.

Grapene had stated in the offer document dated 11 May 2016 that it does not “intend to maintain or support any action taken or to be taken to meet the unit-holding requirement or maintain the present listing status of IPIT.”

Last month, Grapene had increased its stake in IPIT to 51.18% from 47.51%. Accordingly, IPIT became a majority-owned subsidiary of IBREL.

Grapene had made an offer announcement, pursuant to the requirements under the Singapore code on takeovers and mergers, for acquisition of all remaining units in IPIT at an offer price of Singapore $0.25 in cash for each unit.

IBREL had said that the financials of IPIT will be consolidated with IBREL from the first quarter of the current fiscal. Post consolidation, IBREL’s net debt will increase from Rs 4,617 crore to Rs 7,435 crore, it had said.

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Indiabulls to delist Singapore property trust arm after hiking stake

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