Innopac CEO resigns amid queries over acquired biz

CEO of Innopac Holdings Wong Chin Yong has resigned, just about a month after the firm was directed by the Singapore Exchange (SGX) to explain how it assessed businesses that the firm had planned to sell at a sharp discount to Mr Wong. 

Innopac said in an exchange filing late on Friday that Mr Wong, who is also the chairman of the board, plans to step down on March 31, 2019.

On Nov 15, Innopac's audit committee was ordered to engage a reputable valuer to assess businesses that the company plans to sell at a sharp discount to their potential net tangible value. Innopac said in October that it would dispose of its stakes in a number of businesses to Mr Wong for S$100,000. Innopac had earlier said on Nov 5 that it would not engage a valuer due to cost issues.

A recent investment process review directed by SGX further showed that the company did not have a written set of investment procedures or internal control manual to guide its investments in businesses and joint ventures. The review done by Provenance Capital and published Nov 30 looked at five selected transactions made or attempted by the group between 2013 and 2017.

The company had been deemed a cash company by SGX, meaning that it should be suspended under listing rules. The company disagreed, saying that it has other investments in properties, joint ventures and available-for-sale investments. The exchange wanted to know if the company would be able to operate as an ongoing business, and whether the company had any active business operations.