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Datapulse board views diversification as immediate priority
THE board of Datapulse Technology views diversification from an existing business that has limited profitability and growth prospects as an immediate priority, according to a letter by its chief financial officer, Michael Lee, to the Singapore Exchange this evening.
Mr Lee also stated that the board does not view tabling a resolution before shareholders as requisitioned by Uniseraya Holdings and Ng Bie Tjin would help in achieving the business diversification objective.
Uniseraya and Ms Ng hold a combined stake of about 16 per cent in Datapulse. They have served a notice on Dec 26 to Datapulse, requesting the data media storage maker to convene an extraordinary general meeting (EGM).
Ms Ng is the daughter of Datapulse's co-founder and former chairman, Ng Khim Guan. The Ng family is seeking to replace four directors on the company's board and re-evaluate a diversification strategy mooted by its current management.
In another letter dated on Jan 10 and issued to Datapulse, Uniseraya and Ms Ng reiterated a resolution tabled in their Dec 26 requisition notice, which calls for a complete feasibility study to be conducted before any proposed business diversification.
This comes as Datapulse acquired Wayco Manufacturing for a cash consideration of S$3.5 million last month in a bid to enter into an entirely new business of manufacturing hair care, cosmetics and other homecare chemical products.
Datapulse had said that it did not conduct due diligence on Wayco Manufacturing prior to the acquisition as its CEO, Mr Kee, was a former general manager of the vendor, Way Company, and is "familiar with the business and operations of the target company".