Anonymous
What happens when a REIT/Business Trust delist itself?
I understand that listed company can delist itself and i believe REIT can also, as seen by Saizen REIT. What is the process of a REIT de-listing itself and what will happen to shareholders who hold the REITs?
Another question is can a REIT go bankrupt or can it default on its payment?
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Gabriel Tham
22 Apr 2019
Tag Team Member at Kenichi Tag Team
- Meeting is held to get shareholders approval on the delisting price and if any special dividend
- Once approved and mandatory delisting is passed, then as shareholder you just sit and wait for the shares to be delisted and the money deposited back to bank.
- Yes, REITs can default on their dividend payout. Just like any other businesses if the REIT does not have enough money to payout they can choose not to do so.
- REITs can go bankrupt, which might trigger liquidation of assets/property.
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