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23-04-2014, 01:52 PM
Pteris director withdraws from EGM
He cites inability to muster enough proxy votes to pass the resolutions
PUBLISHED ON APR 23, 2014 1:09 AM
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Mr Winston Tan Tien Hin (right) had proposed that (from left) Mr Wu Tzu Chien, Ms Elaine Beh and Mr Tan Han Beng be made Pteris Global directors. The fourth person proposed, Mr Lim Neo Chian, is not in the photo. -- ST PHOTO: MARK CHEONG
BY IVAN TEO
A MOVE to oust five directors from Singapore-listed Pteris Global has come to an abrupt end as the director who called for their removal has decided to stand down.
In a statement released yesterday, Mr Winston Tan Tien Hin said he would withdraw from the extraordinary general meeting (EGM) this Friday and would resign as a director immediately.
Last month, Mr Tan called for the EGM to remove five directors, including chairman Lim Joo Boon and new chief executive Peter Zheng Zuhua, also an executive director. The others were independent directors Gan Siok Loon, Fong Heng Boo and Robert Chew.
In their place, Mr Tan had proposed the appointment of four directors at the EGM: Mr Lim Neo Chian, chairman of Ascendas Hospitality Fund Management; Mr Wu Tzu Chien, a consultant at Singapore Technologies Engineering; accountant Tan Han Beng and lawyer Elaine Beh.
In withdrawing from the EGM, he cited his inability to muster enough votes through proxies to pass the resolutions.
Mr Tan is the second largest shareholder of Pteris with 10.54 per cent of the company. He had hoped to gather enough proxy votes from the approximately 62.5 per cent stake in Pteris held by more than 3,500 shareholders.
However, he conceded that it would be hard to pass the resolutions given that major shareholders had indicated they opposed the removal of the directors.
Majority shareholder China International Marine Containers (CIMC), with a stake of 15 per cent, along with directors Mr Low Kok Hua and Dr Soon Kong Ann, with a combined stake of about 12 per cent, had all indicated they would not support the move.
Mr Tan admitted that despite the support from many shareholders, he did not have more than 27 per cent of shareholdings needed to pass the EGM resolutions.
Reasons he cited for calling this EGM include to stem further financial losses and offer shareholders a fresh perspective to turn the struggling airport logistics services company around.
Pteris posted a pre-tax loss of $29.7 million last year, unchanged from 2012, while revenue fell 23 per cent to $50.4 million.
Mr Tan also raised concerns about the terms of a proposed reverse takeover (RTO) of Pteris by Tianda Group, a unit of CIMC, saying it will leave CIMC with a 75 per cent stake with no profit guarantee on the assets acquired.
Mr Tan also said he will continue to reach out to other shareholders before voting on the RTO at a subsequent EGM.
In a statement released yesterday, the Pteris board noted the withdrawal and said Mr Tan's actions have incurred unnecessary costs. The EGM on Friday will proceed but Mr Tan's withdrawal of the requisitions to remove the directors will be noted.
The date of the RTO EGM has yet to be announced. The RTO is expected to be done by Aug 31.
ivantyh@sph.com.sg
He cites inability to muster enough proxy votes to pass the resolutions
PUBLISHED ON APR 23, 2014 1:09 AM
Mr Winston Tan Tien Hin (right) had proposed that (from left) Mr Wu Tzu Chien, Ms Elaine Beh and Mr Tan Han Beng be made Pteris Global directors. The fourth person proposed, Mr Lim Neo Chian, is not in the photo. -- ST PHOTO: MARK CHEONG
BY IVAN TEO
A MOVE to oust five directors from Singapore-listed Pteris Global has come to an abrupt end as the director who called for their removal has decided to stand down.
In a statement released yesterday, Mr Winston Tan Tien Hin said he would withdraw from the extraordinary general meeting (EGM) this Friday and would resign as a director immediately.
Last month, Mr Tan called for the EGM to remove five directors, including chairman Lim Joo Boon and new chief executive Peter Zheng Zuhua, also an executive director. The others were independent directors Gan Siok Loon, Fong Heng Boo and Robert Chew.
In their place, Mr Tan had proposed the appointment of four directors at the EGM: Mr Lim Neo Chian, chairman of Ascendas Hospitality Fund Management; Mr Wu Tzu Chien, a consultant at Singapore Technologies Engineering; accountant Tan Han Beng and lawyer Elaine Beh.
In withdrawing from the EGM, he cited his inability to muster enough votes through proxies to pass the resolutions.
Mr Tan is the second largest shareholder of Pteris with 10.54 per cent of the company. He had hoped to gather enough proxy votes from the approximately 62.5 per cent stake in Pteris held by more than 3,500 shareholders.
However, he conceded that it would be hard to pass the resolutions given that major shareholders had indicated they opposed the removal of the directors.
Majority shareholder China International Marine Containers (CIMC), with a stake of 15 per cent, along with directors Mr Low Kok Hua and Dr Soon Kong Ann, with a combined stake of about 12 per cent, had all indicated they would not support the move.
Mr Tan admitted that despite the support from many shareholders, he did not have more than 27 per cent of shareholdings needed to pass the EGM resolutions.
Reasons he cited for calling this EGM include to stem further financial losses and offer shareholders a fresh perspective to turn the struggling airport logistics services company around.
Pteris posted a pre-tax loss of $29.7 million last year, unchanged from 2012, while revenue fell 23 per cent to $50.4 million.
Mr Tan also raised concerns about the terms of a proposed reverse takeover (RTO) of Pteris by Tianda Group, a unit of CIMC, saying it will leave CIMC with a 75 per cent stake with no profit guarantee on the assets acquired.
Mr Tan also said he will continue to reach out to other shareholders before voting on the RTO at a subsequent EGM.
In a statement released yesterday, the Pteris board noted the withdrawal and said Mr Tan's actions have incurred unnecessary costs. The EGM on Friday will proceed but Mr Tan's withdrawal of the requisitions to remove the directors will be noted.
The date of the RTO EGM has yet to be announced. The RTO is expected to be done by Aug 31.
ivantyh@sph.com.sg
