OEL obtains S$1.2m loan from controlling shareholder

OEL (Holdings) Limited on Thursday said it has entered into a loan agreement with controlling shareholder Zhang Jian for an interest-free loan of about S$1.2 million.

The Catalist-listed property management group will use the loan to repay an existing bank loan, partially repay an existing director loan, and for working capital purposes.

The loan is to be fully repaid 399 days from the date of disbursement.

As at Thursday, Dr Zhang holds a 20.7 per cent stake in the company's entire issued share capital.

His loan to OEL is considered an interested person transaction. However, shareholders' approval is not required because the value of the transaction is zero, given that the loan is interest-free.

The company's audit committee is also of the view that the transaction is not prejudicial to the company's interests and its minority shareholders.

OEL shares were trading at 2.5 Singapore cents as at 9.15am on Friday, up 0.1 cent or 4.2 per cent.