Singapore billionaire Kwek Leng Beng sues his son in battle to control the development of property giant cities

Real estate billionaire Kwek Leng Beng revealed he has filed a lawsuit against his son Sherman in Singapore to control the family’s Crown Jewelry, Real Estate Giant Urban Development Ltd (CDL).

“We have filed court documents today to get things right,” Kwek Leng Beng, 84, executive chairman of Singapore-listed CDL, said in a statement. “This is for handling this time at the board level.” It is necessary to try a coup and restore the integrity of the company.”

Sherman Kwek, 49, is the CDL team CEO, who has held positions since 2018. Kwek said Sherman colluded with some board members to wrestle control by making changes to the composition of the board without proper review by the nomination committee. .

“We intend to change the CEO at the right time,” said the executive chairman. “We will continue to explore all available legal options to vigorously defend and protect the interests of CDL and its shareholders.”

After news of the board of quarrel broke out, the company reported net profit of 37%, down 37% from the previous year to $201.3 million ($150.5 million). Sherman Kwek said in earnings statement: “In 2024, a huge counter-trend is a year, with macroeconomic pressures and sector-specific challenges creating a new trend for the group’s near-term earnings and portfolio calibration program. pressure.”

CDL said in another statement that it had cancelled the scheduled Wednesday morning media briefing and temporarily suspended transactions in its shares “in light of the board’s differences.”

“Despite this temporary shutdown, our business operations remain fully operational and unaffected,” the company said. He added that Sherman Kwek remains the group CEO,” he added. Until there is a board resolution that changes the company's leadership.”

Another statement by Sherman on behalf of the “majority board” said the recent changes in the board’s work “never been about the removal of respected chairmen.”

“These steps to strengthen the board are purely to ensure that the CDL has the highest governance standards … and our collective decisions as the board are as strong as possible,” said the statement via email. “Since this matter is now being ruled in court, we There will be no comment on the case’s merits and further announcements will be made if there are any significant developments.”

Kwek Leng Beng and his family are the richest in Singapore for a net worth of $11.5 billion. He and his late brother Kwek Leng Joo and their father Kwek Hong Png purchased the lost city development in 1971 and transformed it into one of the city's largest real estate developers with a market value of S$4.6 billion. Kwek Leng Beng is also the executive chairman of the privately owned Hong Leong Group, which was founded by his father in 1941 as a trading company. His cousin Quek Leng Chan (also a billionaire) owns and runs a separate group in Malaysia, also known as Hong Leong, and the name translates to “good harvest”.