CDL: From humble beginnings to boardroom battle

Mr Kwek Leng Beng, executive chairman of City Developments Limited (CDL), has filed a lawsuit to address what he sees as an "attempted coup" by his son Sherman, board members Philip Lee Jee Cheng and Wong Ai Ai, as well as a group of directors acting with them to consolidate control of CDL's board.

The move was made known to the public in a Feb 26 statement by Mr Kwek Leng Beng which was sent to The Straits Times.

In response, Mr Sherman Kwek on Feb 26 said he never intended to oust the chairman, and expressed disappointment over his father's "extreme actions".

Here is the timeline of events leading to the fallout:

1972: Mr Kwek Leng Beng's family business, Hong Leong, acquires a controlling stake in City Developments Limited (CDL), transforming the loss-making company into a profitable one by diversifying into investment properties. This began with the purchase of Guan Realty, which developed City Plaza, CDL's first mixed-use development.

1974: The late Mr Kwek Hong Png becomes chairman of CDL and Mr Kwek Leng Beng is appointed managing director.

1980s: Mr Kwek Hong Png's younger son, the late Mr Kwek Leng Joo, joins CDL to strengthen the management. Throughout the 80s, CDL launched 21 residential projects and completed 12 investment properties.

In 1987, a prime site in Raffles Place was purchased which became Republic Plaza, CDL's flagship and current headquarters. By the late 80s, CDL was the largest listed property developer in Singapore, with its market value crossing $2 billion.

1992: CDL starts acquiring hotels in New Zealand.

1996: Millennium & Copthorne Hotels (M&C) is listed on the London Stock Exchange, a first for a Singapore-controlled company.

Early 2000s: Despite the outbreak of Sars in Asia, CDL completes over 50 residential projects, including Singapore's then tallest residence The Sail @ Marina Bay.

2006: M&C announces the initial public offering of CDL Hospitality Trusts, the first hotel real estate investment trust in Singapore. M&C also opens the five-star Millennium Hongqiao Hotel in Shanghai (now Grand Millennium Shanghai Hongqiao), its first hotel in China.

There is also the opening of Singapore's first branded residences, St Regis Residences.

2009: Opening of City Square Mall, Singapore's first eco-mall. From 2010: CDL diversifies overseas, starting with China, as well as to Britain, Japan and Australia.

January 2018: Mr Sherman Kwek becomes CDL's group CEO. He is also appointed an executive director of the company in May 2019.

2019: CDL privatises London-headquartered M&C on Nov 19, 2019, delisting it from the London Stock Exchange at a valuation of £2.23 billion (S$3.8 billion). M&C becomes a wholly owned subsidiary of CDL.

May 2019: CDL announces a 24 per cent stake in China's Sincere Property Group for 5.5 billion yuan, or S$1.1 billion then, its single largest investment in China to date.

April 2020: CDL completes the acquisition of a 51.01 per cent effective joint controlling stake in Sincere Property Group, recognising $43.2 million of negative goodwill for the purchase. CDL books a $1.78 billion impairment on the investment and reports a net loss of $1.9 billion for 2020.

October 2020: Mr Kwek Leng Peck gives notice of resignation as a non-executive and non-independent director of CDL with effect from Oct 19, 2020, due to disagreements over the Sincere Property investment.

December 2020: CDL sells Copthorne Orchid Hotel & Resort Penang. The sale follows earlier hotel divestments in Cincinnati in the US and Birmingham in Britain.

Jan 4, 2021: A special working group is formed to oversee Sincere Property. CDL ringfences its financial exposure to Sincere.

September 2021: CDL sells its stake in Sincere for a nominal sum of US$1 (S$1.34). CDL posts an $85 million (restated) net profit in 2021.

2022: CDL reports record profit of $1.3 billion.

2023: CDL reports a net profit of $317.3 million.

2024: CDL reports a net profit of $201.3 million. It buys Hilton Paris Opera Hotel for €240 million (S$337 million) ahead of the Paris 2024 Olympics.

Nov 28, 2024: Mr Tan Kian Seng gives notice of resignation as independent non-executive director, with the last day on Dec 31, 2024.

Jan 28, 2025: CDL's corporate secretary sends an e-mail to the board, with Mr Philip Lee and Ms Wong Ai Ai nominating two additional independent directors - Ms Jennifer Duong Young and Ms Wong Su-Yen.

Jan 31, 2025: Mr Philip Lee requisitions a board meeting to approve the proposed appointments.

Feb 7, 2025: CDL's board approves the appointment of Ms Jennifer Duong Young as independent non-executive director. She spent 21 years at Credit Suisse. The board also approves the appointment of Ms Wong Su-Yen as an independent non-executive director. Ms Wong has over 30 years of experience across diverse industries including high-tech, financial services, professional services, education, retail, and the public sector.

Feb 7, 2025: A board meeting is held with no vote taken. Later that night, a Directors' Resolution in Writing for the appointment of the two new directors is circulated and approved within hours without going through the typical nominating committee process.

Feb 8, 2025: Mr Kwek Leng Beng sends an e-mail seeking Mr Sherman Kwek's dismissal as CEO of CDL.

Feb 9, 2025: The reconstituted board, led by Mr Philip Lee, objects to the CDL chairman's attempt to dismiss the CEO.

Feb 21, 2025: CDL says its nominating committee and the remuneration committee will be merged to form the nominating and remuneration committee to "streamline and facilitate holistic oversight and consideration of the appointment, performance and compensation of the directors and key management personnel".

Feb 25, 2025: Mr Kwek Leng Beng files court papers to address an "attempted coup" by Mr Sherman Kwek and parties in concert.

Feb 26, 2025: A closed-door High Court hearing is held to hear Mr Kwek Leng Beng's lawsuit against his son and several board directors.