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SINGAPORE, Dec 4 (Reuters) – Singapore’s Sabana Real Estate Investment Trust (REIT), which was under pressure from activist funds over a planned merger with larger rival ESR-REIT , said its shareholders had voted against 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.
Sabana REIT said in a statement on Friday that 66.7% of its shareholders had backed the proposal to amend its trust deed, but this was below the 75% required for the merger vote to go ahead.
“While we believe the merger has a compelling strategic rationale, unitholders have expressed that they prefer Sabana REIT to remain as a standalone REIT,” Chief Executive Officer Donald Han said. (Reporting by Anshuman Daga; Editing by Sam Holmes and Sherry Jacob-Phillips)