CDL to unveil strategic review findings on Sept 28 after months-long delay
City Developments Ltd (CDL) will release the outcome of its strategic review before trading hours on Sept 28, followed by a livestreamed briefing. The review, conducted by Teneo, is expected to outline CDL's capital allocation framework and future direction amid a recovery in earnings and lingering
City Developments Ltd (CDL) will release the findings of its strategic review before trading hours on Sept 28, followed by an analyst and media briefing that will be livestreamed on its website later that day, the property developer said in an announcement.
The review, which was first announced during a February earnings briefing and originally expected to be completed in June, is being conducted by global advisory firm Teneo. Sherman Kwek, CDL's group CEO, said in a press release last month that the review will "clearly articulate the future strategic direction, capital allocation framework and implementation roadmap for our next phase of value creation."
Analysts cited by The Edge Singapore expect the review to include CDL's capital recycling strategy and plans to develop a capital-light platform, among others. CDL had previously said it wanted to "revamp" its strategy and better articulate its value to investors.
Sherman had also described the review as "timely" after the firm faced difficulties last year, including his internal dispute with his father, The Straits Times reported. The family feud began last February, when executive chairman Kwek Leng Beng sued his son, accusing him of an "attempted coup" aimed at consolidating control of the board. The suit triggered a highly publicized spat between the two and raised questions about CDL's direction before the case was withdrawn weeks later.
While the feud initially dented market confidence, analysts have recently taken a more positive view on the firm following its strong results, according to The Business Times. CDL posted a 230.7 per cent year-on-year jump in net profit to S$301.6 million in the first half of this year, as revenue surged 61.1 per cent to S$2.72 billion. The growth was driven by its property development business, which benefited from robust demand in Singapore's private residential market, and its hotel arm, which returned to profit thanks to higher revenue and a net foreign-exchange gain from the strengthening of the Singapore dollar.
Leng Beng, who serves as CDL's executive chairman, ranked second on Forbes's wealth ranking for Singapore earlier this month with an estimated net worth of US$14.3 billion, which he shares with his family.
