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Raffles Education rejects Oei Hong Leong's request for EGM
THE board of Raffles Education said on Monday that tycoon Oei Hong Leong’s bid to block its proposed rights issue by requisitioning an extraordinary general meeting (EGM) to vote on a resolution to block the rights issue is invalid.
The private education operator announced a renounceable, non-underwritten rights issue on Dec 6. This would raise S$27.44 million in net proceeds meant primarily to repay loans owed to chairman and chief executive Chew Hua Seng.
On Dec 13, Mr Oei sent a requisition letter to the board demanding an EGM be held where shareholders can vote to terminate the rights issue.
Raffles Education said that it has obtained legal advice on the contents of Mr Oei’s letter, and was advised that the proposed resolution is invalid and/or would be ineffective in light of the share issue mandate approved by the shareholders at the last annual general meeting.
“The board is not required to, and will not be convening an extraordinary general meeting for purposes of voting on the proposed resolution,” it said.