Vibrant Group to sell stakes in Sabana Investment Partners and Sabana REIT

Vibrant Group entered a deal to sell its entire 51 percent stake in Sabana Investment Partners (SIP), or S$20.46 million to InfinitySub.

In addition, Vibrant’s wholly owned subsidiary Singapore Enterprises Pvt. Ltd. (SEPL) agreed to sell a 6.51 percent stake in Sabana Shari’ah Compliant Industrial REIT, or 68.60 million units, to E-Shang Infinity Cayman for S$32.93 million, it said in a filing to SGX Wednesday.

InfinitySub is a wholly owned subsidiary of E-Shang Infinity. Vibrant is Sabana REIT’s sponsor.

In addition, Vibrant agreed to sell 15.61 million units, or 1.48 percent of Sabana REIT’s units, to E-Shang Infinity for S$7.49 million, the filing said. That would follow Sabana REIT’s manager declaring and paying 30.6 million units as a dividend in specie to SIP, which would then pay them as a dividend to Vibrant and other SIP shareholders, it added.

Vibrant said the deal would allow it to realize the value of its investments in SIP and Sabana REIT and to redeploy the capital, reduce its debt and focus on its main business of providing freight and logistics services, and its other business lines of real estate and financial services.

Some of the net proceeds will be used for a partial redemption of Vibrant’s series 003 S$66 million 7.50 percent notes due 2020, and to repay an existing banking facility from UOB, the filing said.

Vibrant said obtained a waiver from SGX for holding an extraordinary general meeting (EGM) for shareholders to approve the deal as the transactions are price- and time-sensitive.

SIP is a special purpose vehicle which owns all of Sabana Real Estate Investment Management, which is Sabana REIT’s manager. Blackwood Investment owns 45 percent of SIP and Atrium Asia Capital Partners owns 4 percent, the filing said.

In a separate filing to SGX Wednesday, Sabana REIT said Eric Khua Kian Keong and Khua Hock Su, who are directors and controlling shareholders of Vibrant and substantial unitholders of Sabana REIT, entered a deal to sell E-Shang Infinity stakes of around 1.75 percent and 0.17 percent, respectively.

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