SHARES IN Treasury China Trust fell 5.6 per cent on the Singapore stock exchange yesterday just a day after the temporary suspension of trading in the stock was lifted.

TCT’s shares closed at 1.175 Singapore dollars (75 cent) yesterday. This was 7.5 per cent lower than its closing price on Friday when trading in the stock was suspended.

Shares in TCT were trading at about 2 Singapore dollars (€1.28) just a year ago but the stock has been caught in the crossfire of Treasury Holdings’ disputes in Ireland with the National Asset Management Agency and KBC Bank Ireland.

The shares were suspended after details of the financial terms around the sale of two subsidiaries of Dublin-based Treasury Holdings that provide management and other services to TCT were published last week in newspapers here, including The Irish Times.

Treasury Holdings sold two subsidiaries to a Jersey-based company called Oriental Management Services Ltd last week.

The Jersey company is owned by Richard Barrett, who is co-owner of Treasury Holdings.

Mr Barrett is also chairman of TCT and owns about 12 per cent of that company.

Treasury Holdings does not own any stock in TCT.

The companies sold were Treasury Holdings Real Estate Pte Ltd, and Treasury Holdings (Shanghai) Property Management Co Ltd. These provide services to TCT’s substantial commercial property portfolio in China.

The deals were announced to the Singapore stock exchange but no financial details were provided.

Last Friday, Mr Barrett told The Irish Times he had paid €2.263 million in cash for the businesses.

Mr Barrett also gave details about how the businesses were valued.

He said the deals were completed in haste because of concerns that Treasury Holdings could have been wound up last week in the High Court on foot of a legal action by KBC.

He said that could have had “catastrophic” consequences for TCT, of which he is chairman and owns about 12 per cent and would have triggered the covenants on a bond held by TCT.

He said TCT would not have been in a position to repay the bond in full were the issuer to seek immediate repayment.

After the sales, Nama joined KBC in its winding-up action against Treasury Holdings. This action has been adjourned until early October.

On Monday, TCT issued its own statement about the sale of the Treasury Holdings’ subsidiaries. It said the board of TCT had been notified of the transfer of the two entities to Oriental Management Services Ltd.

It said Treasury did not seek the approval of the TCT board for the transfers.

“Nevertheless, the board considered that such transfers were in the best interest of [TCT] unitholders as it removes one of the change in control triggers for the bonds,” the statement added.

TCT added that the €2.263 million consideration would be paid in tranches, believed to be over a two-year period.