Singapore tycoon Kwek Leng Beng drops lawsuit against CEO son to mend family divide

The elder Kwek will continue in his role as executive chairman at City Developments Ltd. and his son Sherman Kwek will stay on as chief executive officer, according to a statement late on Wednesday by the patriarch.

“All the board members have agreed to put aside their differences for the greater good of CDL and its stakeholders,” Kwek said in the statement. “We will all continue to focus on strengthening CDL’s business, in accordance with good corporate governance, now and in the future.”

The latest move appears to be a major step towards bridging a significant family rift that spilled into the public in February. The dispute jolted CDL’s stock, and prompted an adviser Catherine Wu to resign from her unpaid role at the hotel unit of CDL.

CDL, Singapore’s biggest listed developer, plunged into crisis when Kwek, 84, accused his son of orchestrating a boardroom coup. He and CDL filed a lawsuit against the younger Kwek.

Kwek Leng Beng spent six decades building up the business after taking control of the loss-making CDL together with his father and brother. They later turned Millennium & Copthorne Hotels into Singapore’s largest international hotel group and one of the largest operators in the world. CDL has hotel, office and residential properties across 29 countries, according to its website.