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Hot stock: Raffles Education falls after Oei Hong Leong withdraws ouster bid

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SHARES in Raffles Education Corp tumbled after tycoon Oei Hong Leong withdrew his bid to remove the founder from the company.

Raffles Education had announced on Thursday after trading hours that Mr Oei and Oei Hong Leong Art Museum Limited have withdrawn their requisition notice. In response, the counter fell 2.5 Singapore cents, or 7.8 per cent, to 29.5 Singapore cents at 9.39am on Friday morning, with nearly six million shares changing hands.

Mr Oei had earlier served notice to convene an extraordinary general meeting (EGM) on Nov 29 to ask for the removal of the company's founder, chairman and chief executive Chew Hua Seng, among other issues. With the withdrawal, the EGM will no longer be held.

Mr Oei, a long-time shareholder in Raffles Education, had not given any reasons for wanting to remove Mr Chew.

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The billionaire businessman recently scooped up more shares in a series of market purchases that revived speculative interest in the stock and boosted its share price.

This brought his interest up to 14.04 per cent, a stake which was diluted to 12.88 per cent after a recent placement.