CDL Shares Soar as Lawsuit Dropped, Signaling Unity and Future Focus

City Developments Shares Surge After Lawsuit Dropped

Shares of City Developments (CDL) experienced a significant jump on Thursday, March 13th, following the announcement that executive chairman Kwek Leng Beng was dropping his lawsuit against his son Sherman Kwek and a group of directors.

The stock price soared as high as 4.45% to S$5.16 (US$3.87) during morning trading. Although it relinquished some gains later in the day, it still closed at S$5.09, representing a 3% increase or S$0.15. Notably, the trading volume was substantial, with approximately 5.67 million shares worth S$29 million changing hands.

This positive performance by CDL outshined the broader Straits Times Index, which only managed a modest 0.1% increase.

In a statement released late on Wednesday, the senior Kwek declared his decision to discontinue the lawsuit filed in late February and confirmed his continued role as executive chairman. Additionally, Mr. Sherman Kwek will retain his position as group CEO.

Furthermore, the statement confirmed that all current directors would remain on the CDL board.

The senior Kwek emphasized that all CDL board members had agreed to set aside their differences for the benefit of the company and its stakeholders. This decision appears to have instilled confidence in investors, leading to the observed surge in share price.