Senior establishment figures mediated between CDL's Kwek Leng Beng and son: Sources

Trusted family friends and senior establishment figures in Singapore intervened and mediated a truce which put a halt to an acrimonious boardroom fight between billionaire Kwek Leng Beng and his son Sherman Kwek, according to sources who spoke to The Straits Times.

- Angela Tan

The halt came after more than two weeks of tit-for-tat media statements by both men, during which the share price of their real estate company City Developments Limited (CDL) reached a 16-year low.

The Straits Times understands that the senior figures are neutral parties who have kept in contact with the senior Mr Kwek, who is the executive chairman of CDL, and his son, CDL's group chief executive.

The mediation took place in earnest after Mr Kwek Leng Beng announced on March 4 the resignation of Dr Catherine Wu as "an unpaid independent adviser" to the board of CDL's hotel arm, Millennium & Copthorne Hotels (M&C).

Mr Sherman Kwek had said Dr Wu was the reason for the dispute between the father and son. He accused her of meddling in matters well beyond her scope, adding that she wields and exercises enormous influence.

Due to her long relationship with the chairman, efforts that were made to manage the situation were done sensitively, but to no avail, Mr Sherman Kwek said.

On March 12, the saga came to an abrupt halt as quickly as it had erupted, after the senior Mr Kwek said he had decided to drop the lawsuit he had filed in February to stop his son and majority directors of CDL from implementing a number of board resolutions.

Mr Kwek Leng Beng will continue in his role as CDL's executive chairman, and Mr Sherman Kwek will continue as its group CEO. All the current directors, including the two new independent directors—Ms Jennifer Duong Young and Ms Wong Su-Yen—will remain on the CDL board.

The older Mr Kwek said all the board members have agreed to put aside their differences for the greater good of CDL and its stakeholders, and will continue to focus on strengthening CDL's business.