(Recasts, adds comment from activist funds)
SINGAPORE, Dec 4 (Reuters) – Investors in a Singapore real estate investment trust (REIT) voted down a merger with a larger rival on Friday, in a rare win for shareholder activism in the city-state dominated by retail investors.
Sabana REIT, which was under pressure from Quarz Capital and Black Crane Capital over a planned merger with ESR-REIT, said shareholders rejected a proposal to amend its trust deed, thus, terminating the merger.
The activists had said the deal between Sabana REIT and ESR-REIT, whose managers are both owned by a unit of Asian logistics giant ESR Cayman Ltd, had undervalued Sabana REIT.
“This is the first time in the 18-year history of Singapore Exchange’s REIT market that a proposed merger has been voted down,” Quarz Capital and Black Crane said in a statement.
Sabana REIT said 66.7% of its shareholders had backed the proposal to