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No intention to pay out S$0.20 dividend proposed by Ng Bie Tjin: Datapulse
DATAPULSE Technology on Thursday evening revealed its April 16 response to an open letter by minority shareholder Chew Ah Kong with regard to the cash-rich company's dividend payment and diversification plan.
The company has also reaffirmed that it has no intention of paying out an interim 20 Singapore cents dividend proposed by Ng Bie Tjin, the daughter of Datapulse's co-founder.
Datapulse released its response, and the two letters by Mr Chew dated April 16 and April 17 in a filing with the Singapore Exchange after market close.
In its response to Mr Chew, Datapulse said: "The board strongly believes that we can enhance shareholder value through this proposed business diversification to bring about corporate recovery from the deteriorating performance of the core business of media storage previously."
Datapulse added that it intends to deploy its cash "prudently to invest in the new core businesses to deliver returns to shareholders in the medium-term" and believes that the company's share price would be rerated correspondingly by the market when the plan materialises.
On Mr Chew's suggestion that Datapulse return some cash and raise money from capital markets to fund its diversification plans, the company said that such a move may result in dilution to all existing shareholders.
"We believe our deserving shareholders/investors like yourself would like the board and company to pursue a business strategy that can bring about good growth prospects and set itself on a recovery path," the company said.
"For those shareholders who need to raise liquidity for their immediate needs, they always have the option of selling their shares in the market," it added.
10 resolutions will be tabled for Datapulse's EGM on Friday - four to unseat reigning directors who include newly-appointed CEO Wilson Teng Wai Leung, Low Beng Tin, Thomas Ng Der Sian and Rainer Teo Jia Kai.
Another four will be to approve the appointment of Ng Bie Tjin and three others - Ng Boon Yew, Loo Cheng Guan and Koh Wee Seng - to the board.
The ninth and tenth resolutions are to get shareholders' nod for the current board's diversification agenda and its proposed special dividend of one Singapore cent per share.
Datapulse shares finished S$0.01 or 2.9 per cent lower at S$0.335 on Thursday.