Koh Brothers rejects shareholders’ renewed push for distribution of Oiltek stake
Putting the same resolution to a vote at the group’s 2025 AGM was to promote open engagement, says the board
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[SINGAPORE] Property group Koh Brothers has turned down a fresh attempt by shareholders to force the company to distribute its stake in Oiltek International , saying it is not in the best interests of the group to do so.
In a bourse filing on Monday (Apr 13), the mainboard-listed conglomerate said its board will not be putting the shareholders’ proposed resolution to a vote at its upcoming annual general meeting (AGM).
The resolution, filed on Mar 25 under Section 183 of the Companies Act by a group of shareholders, called on Koh Brothers to get its 54.8 per cent-owned subsidiary Koh Brothers Eco Engineering (KBE) to distribute all of its roughly 97.4 million Oiltek shares to KBE shareholders.
Koh Brothers would then pass those shares on to its own shareholders on a pro-rata basis.
This was the second time that the same group of shareholders had made the request. They succeeded in getting the same resolution tabled at Koh Brothers’ AGM in April 2025, but it was voted down by a majority of shareholders.
The board said it had obtained legal advice and determined that the proposal falls within its remit as a management decision.
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It noted that its decision to put the resolution to a vote at the 2025 AGM was made on an “exceptional basis” to promote open engagement with shareholders.
This time, the board cited several reasons for refusing to table the resolution, including the “uncertain and volatile” operating environment, the group’s financing arrangements, the “potential effects on the financial position of Oiltek, KBE and the company”, and the desire to retain control over the strategy and future growth of Oiltek.
Koh Brothers holds an indirect stake in Oiltek through KBE. Oiltek, which builds vegetable oil processing plants and biofuel refineries, has seen its market capitalisation swell to about S$892.3 million, from S$291.7 million on Dec 31, 2025.
Shares of Koh Brothers closed 5.7 per cent or S$0.02 higher at S$0.37 on Monday, before the announcement. Shares of KBE rose 14.8 per cent or S$0.017 to S$0.132, and shares of Oiltek gained 3.5 per cent or S$0.07 to S$2.08.
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