Family-run listcos: A smart investment decision, or 'clusters of long-term insiders'?
ON WEDNESDAY (Dec 22), Asti 575 announced the retrenchment of its chief executive Michael Loh Soon Gnee. The company, which provides various services to semiconductor equipment manufacturers, said it had commenced a retrenchment exercise in July in order to ensure its survival, and that Loh was the latest casualty of this exercise.
Loh is the single largest shareholder of Asti, with a 19.9 per cent stake as at May 11. He is also the company's chairman, and will remain so despite his retrenchment. Loh is contractually entitled to S$2 million as part of his termination, but the board said it will pay him just S$1.4 million.
Asti's latest development is unusual, but is merely the latest in a long list of issues the company has faced for several years. The company is currently on the Singapore Exchange's (SGX) watch list, and owns stakes in 2 other troubled companies.
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