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AEI Corp's share price jumps 21%, prompting SGX query

AEI Corporation's share price shot up in the last half-hour of trading on Wednesday before closing nearly 21 per cent higher, prompting a query from the Singapore Exchange (SGX).

Shares of the mainboard-listed aluminium producer finished at S$0.88, up 20.55 per cent or S$0.15, with slightly over one million shares changing hands. 

At 7pm, AEI issued a response, saying it was unaware of any information not previously announced, but pointed to its sale of the business as a possible explanation for the trading. 

The price jump comes after AEI announced on Monday that it is selling its business and liabilities to the investment vehicle of its executive directors, Ian Tan Chu En and his wife Sinta Muchtar, for S$6.4 million.

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As the deal counts as an interested-person transaction, Mr Tan, who is also AEI's chief executive officer, and Ms Muchtar, stepped down from their respective positions in AEI on Monday.

The buyer, 3PLE1 Holdings, is the investment holding vehicle of the pair and their associates, with Mr Tan also acting as the buyer's guarantor for the deal. Mr Tan and Ms Muchtar, on top of being shareholders, are also directors of Singapore-incorporated 3PLE1 Holdings.

After the announcement, AEI had repurchased 249,500 of its shares for about S$174,000 on Nov 11 and Nov 12. 

Since then, the company has further bought back another 171,900 of its shares for about S$125,900, AEI disclosed.