No Signboard CEO arrested and out on bail in share buyback probe

Singapore

SEAFOOD restaurant operator No Signboard Holdings said on Thursday morning that its chief executive officer Sam Lim Yong Sim was arrested on April 30 and released on bail. He has not been charged with any offence, it added.

The arrest was made on "reasonable suspicion" of breaches in the Securities and Futures Act, under Section 197 on false trading and market rigging transactions, as well as Section 218 on prohibited conduct by connected person in possession of inside information, said the company.

The arrest took place amid an ongoing probe by the Commercial Affairs Department (CAD) into the company's Jan 31 abortive share buyback.

The shares were bought at a price that was above the regulatory limit on share buybacks. The company said in February that Mr Lim had made an "honest mistake" when he inadvertently instructed the company's broker to buy the shares during a black-out period when dealing in the company's securities was restricted.

On Jan 31, the stock surged nearly 24 per cent to S$0.15, prompting a query by the Singapore Exchange and, soon after, a trading halt from the company.

No Signboard also clarified on Thursday that copies of the documents in connection with the abortive share buyback had been provided to the CAD.

Mr Lim surrendered his passport to the CAD as a requirement during investigations, the company said on April 29.

Its board of directors reiterated that the business and operations of the company will continue as usual. The company said it will continue to "cooperate fully" with the CAD in the probe.

Citing the pending probe and a lack of charges, the nominating committee has confirmed that Mr Lim and chief financial officer Voon Sze Yin can and will stay on the job, the board added in a separate statement on Thursday evening. It said the committee "will re-assess its position as and when there is any basis to do so".

The counter closed at 8.3 Singapore cents on Thursday, down 0.2 cent.

Additional reporting by Annabeth Leow