The long-stop date under the equity purchase agreement for EC World REIT’s proposed divestments has been extended to Oct 31, from Jan 30.
The extension comes as the purchasers and REIT sponsor said that they were unable to complete the divestment as they have not secured the requisite financing for the divestment.
The date was extended under the supplementary agreement that was signed on July 9 between the REIT’s manager, vendor, purchasers, sponsor, as well as Hangzhou Bei Gang Logistics Co., Ltd.
As at July 10, a total of RMB333.03 million ($62.1 million) – out of the equity consideration of RMB1.37 billion - has been paid.
According to the REIT manager, the purchasers will need to obtain sufficient financing to be able to pay the outstanding balance of RMB1.04 billion to the vendor.
The agreement will take effect only with the approval of the REIT’s independent unitholders. Their approval will be sought at an extraordinary general meeting (EGM).
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The agreement also provides for the flexibility of a two-stage completion process of the proposed divestment.
Units in EC World REIT closed at 30 cents on July 7.
