27 March 2017
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Perennial appeals against High Court decision related to Capitol project

Business Times
21 Mar 2017
Lee Meixian

Perennial Real Estate Holdings on Monday filed appeals over the High Court's earlier decision to dismiss the winding-up applications for three joint entities that it holds with Pontiac Land unit, Chesham Properties.

On March 3, Judicial Commissioner Kannan Ramesh had acknowledged the deadlock between the shareholders, but accepted Chesham's argument that it would not be just and equitable to wind up the companies because there is an exit mechanism available to Perennial under the constitutions of the companies - in this case, it provides for one party to offer to sell its shares to the other at a fair value.

He added that where an exit mechanism is available to a shareholder, that shareholder should abide by the agreement and use the exit mechanism.

In this case, Perennial did not use that mechanism, so there was no unfairness in warranting the winding-up of the companies.

The three companies Perennial is seeking to wind up are the joint entities that developed the Capitol integrated development project.

In April last year, Perennial had sought court action to either wind up the three companies that hold the project's luxury hotel, retail shops, residential units, and theatre, or have the court order a sale or buy-out.

All three firms are equally owned by Perennial and Chesham.

Perennial on Monday said it will make the necessary announcements when there are further material developments on this matter.

When contacted, a Pontiac Land spokesman declined to comment.

Perennial's counter ended a cent lower at S$0.825 on the stock market on Monday.

Representing Perennial is TSMP Law Corp's Thio Shen Yi, while Chesham is represented by Davinder Singh and Pardeep Singh of Drew & Napier.

Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.