Dear Church:
To date, CHC has held a 39.2% effective interest in Suntec International Convention and Exhibition Centre (“Suntec Singapore”) through our subsidiary, Urban Property Investments Limited (UPI). The remaining 60.8% was held by Suntec REIT.
Due to the COVID-19 situation, there has been severe disruption to businesses in Singapore, in particular the Meetings, Incentives, Conferences and Exhibitions (“MICE”) industry. In April this year, the CHC Board was informed that, in order to fund the business needs of Suntec Singapore, there would be an equity call for a capital injection of $40 million from Suntec Singapore’s shareholders. Based on our stake of 39.2%, CHC’s share of this capital injection would be $15.68 million. The decision to participate had to be made by the first week of June 2020.
After consulting our legal advisors and auditors, CHC’s Board deliberated substantially over the various possible options, studying the advantages and disadvantages of each possible scenario. Ultimately, the Board made the decision not to participate in this round of capital injection.
The Board based its decision on the fact that the COVID-19 situation is still ongoing, and that it would be prudent—given the current economic outlook—to preserve CHC’s reserves.
As CHC did not participate in the capital injection, there is now a change in the percentage of ownership of Suntec Singapore, with CHC holding 33.7% and Suntec REIT holding 66.3%.
The Management Board of CHC is fully committed to protecting CHC and its assets above any other business decision. If you have any questions regarding this matter, please email us at info@chc.org.sg.
Please keep the Board in prayer as we navigate this change. We trust that God’s wisdom will guide us to do what is best for CHC.
In Christ,
The CHC Management Board
