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Actis Excalibur granted leave for derivative action against KS Energy directors
THE Singapore High Court has granted leave to Actis Excalibur to bring a derivative action against KS Energy executive chairman and chief executive Kris Taenar Wiluan and its director Richard James Wiluan.
The intended derivative action was taken on behalf of KS Distribution and its wholly owned units, Aqua-Terra Oilfield Equipment & Services and SSH Corporation.
KS Energy, an oilfield supply and services provider, told the Singapore Exchange in a filing on Friday that the complaint by Actis was that the two Wiluans had allegedly breached fiduciary duties to the KS Distribution and its units.
The Wiluans were allegedly in a position of conflict in relation to transactions entered between the KS Distribution entities and certain companies connected to them, including companies of the group.
In 2010, KS Energy had completed the consolidation of the group's oil and gas and marine distribution businesses under KS Distribution, with participation by Actis as a strategic investor.
The consolidation under KS Distribution was intended to create a seamlessly integrated oil and gas and marine services business.
KS Energy now owns 55.35 per cent of KS Distribution, while Actis owns the remaining 44.65 per cent.
KS Energy said that the complaints raised by Actis against the Wiluans will only be considered and decided upon by the High Court in the event that Actis commences the intended derivative action.
It added that the Wiluans are taking legal advice on filing an appeal against the order granted by the High Court.
KS Energy said that its board is supportive of the Wiluans continuing in their roles at the company.
It will make further announcements when further related developments arise.
Shares of KS Energy closed 17.1 per cent or 0.7 Singapore cents lower at 3.4 Singapore cents on Friday, before the announcement was made.