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KLW chairman won't fulfil put option to subscribe for more shares
KLW Holdings chairman Abdul Qawi is refusing to fulfil an obligation to subscribe for two billion new shares that the door maker had put to him, saying that the company is not entitled to exercise that option amid regulatory investigations.
KLW on Nov 11 exercised a put option that required Mr Abdul Qawi to subscribe for those shares at two Singapore cents apiece. KLW shares last traded at one Singapore cent on Nov 17.
On Nov 16, lawyers for Mr Abdul Qawi, who acquired a 9.3 per cent stake in KLW in 2014, replied that the company was "not entitled to exercise the put option", and that Mr Abdul Qawi will not be responding to any put option notices by the company.
The chairman's lawyer cited, among other things, investigations by the Commercial Affairs Department and the Singapore Exchange's reprimand of the company, its former managing director and former group financial controller.
If Mr Abdul Qawi fulfils the put option, it will bring his shareholding in the company to 33.9 per cent.
KLW said that it is currently seeking professional advice on the matter.