CDL seeks nod to buy back shares; Kwek family stake could rise to 55.5%

City Developments Limited (CDL), the Singapore hotel and property group that was embroiled in a recent boardroom feud, is seeking shareholders' approval to buy back the company's shares.

- Angela Tan

In a letter to shareholders on April 8, CDL executive chairman Kwek Leng Beng said the company is seeking shareholders' approval at its annual general meeting on April 23 to renew a share purchase mandate.

This would allow the company to buy back up to 10 per cent of its ordinary shares from the market, as well as an additional 10 per cent of its preference shares.

This could see the Kwek family's controlling stake in CDL increase to 55.51 per cent from 49.29 per cent as at March 10, helping it stave off unwanted takeovers, as it moves to steady the ship after a recent tussle for control of the company between Mr Kwek Leng Beng and his son Sherman Kwek sent CDL shares tumbling.

In Singapore, a mandatory takeover offer is triggered when a bidder, alone or in concert with others, acquires 30 per cent or more of the target company's voting rights.