City Developments’ long-standing internal conflict between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek, appears to have reached a resolution. Kwek Leng Beng has withdrawn legal actions against a group of board directors led by his son, and all board members have agreed to put their differences aside for the good of the company and its stakeholders. This includes the recently appointed independent directors, Jennifer Duong Young and Su Yen Wong, who will continue to serve on the board.
“We are all committed to maintaining good corporate governance and strengthening CDL’s business, both now and in the future,” said Kwek Leng Beng in a statement on behalf of the board. This includes focusing on completing major developments in Singapore and globally, expanding the Millennium & Copthorne brands, and maximizing shareholder value through initiatives such as capital recycling.
The conflict within CDL had escalated when Kwek Leng Beng made allegations of poor corporate governance against the management team, led by his son, which resulted in the resignation of independent director Catherine Wu. However, with the withdrawal of legal actions, the company can now move forward with a united front. This also comes at a crucial time as the company continues to navigate the challenges posed by the COVID-19 pandemic.
In other news, CDL has recently announced the acquisition of five student housing assets in the UK for $357 million. The company also offered a portfolio of 11 strata shops at The Venue Shoppes for $40.77 million, and saw strong sales at The Residences at W with 65 units sold at an average price of $1,780 per square foot. With these developments, CDL remains committed to delivering value to its shareholders and strengthening its position in the market.