Darco minorities renew protests against deputy chairman

DARCO Water Technologies' minority shareholders have fired back at non-executive deputy chairman and controlling shareholder Wang Zhi, following his comments, made in an interview in The Business Times, that the minorities were hampering the company's growth.

In a letter to the Singapore Exchange Regulation (SGX RegCo) from Choi Chee Sun, investment manager of Sofos Infrastructure Investment Fund, and Alexander Robert Stone, the shareholders said Mr Wang had brought the "mistrust" and "resentment" towards him upon himself.

In the letter, the shareholders again complained about a proposed placement that was subsequently aborted. They also resurfaced previous concerns that minorities had been recommended by Darco's executive chairman Wang Yaoyu to accept an "unfair and unreasonable offer" for their shares.

The offer for Darco had been triggered after Mr Wang Zhi purchased a 14.27 per cent stake in Darco from Wuhan Liankai Investment Co (WHLK).

They also said that Mr Wang Zhi's comments to BT about not voting for the re-appointment of certain independent directors because they were "too passive" contradicted with the reasons ex-director Tay Von Kian gave in his cessation notice on June 26.

Mr Tay, who was among the independent directors not re-elected at Darco's annual general meeting, had in his notice said he had voiced objections to a project Darco had hoped to be involved in. He also said that some other directors had seemed to be against the project, but added that this was merely his observation.

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"Minority shareholders have been concerned about the management changes in the Darco board. We have written to Darco on a few occasions, and we were pleased that SGX had also on certain occasions raised questions to ask the company to provide clarity and transparency.

"However, Mr Wang (Zhi) has dismissed such inquiries as having a 'negative impact on the company's operation if this continues' and said such inquiries were 'false allegations'," the shareholders said. They have therefore suggested that the regulators make further enquiries on the matters raised in their letter.

According to Bloomberg data, Sofos Infrastructure Investment Fund and Mr Stone own a combined stake of about 15 per cent in the company.

Amendment note: This article has been amended for clarity and accuracy.