SGX RegCo to investigate disposal by Magnus Energy

THE Singapore Exchange's regulatory arm (SGX RegCo) on Friday notified Catalist-listed Magnus Energy Group to put on hold all corporate transactions until its board is fully reconstituted, and said it would investigate a recent disposal by the firm for possible breaches of the Catalist rules.

Magnus Energy is set to convene an extraordinary general meeting (EGM) on Jan 9 as two teams seek shareholders' support to be appointed directors of the troubled oil and gas company. In a Dec 31 update, the company had said that "all planned actions are expected to be taken only after the EGM".

But it was brought to the attention of SGX RegCo that the company had sold its 50 per cent indirect interest in Mid-continent Environmental Protection (MEPWM) to the latter's existing director, Chong Yen Yee, for RM1 (33 Singapore cents).

As the disposal involved negative relative figures under Catalist rule 1006, the firm should have consulted SGX RegCo on the applicability of Chapter 10 of the Catalist rules. It did not do so.

"The company had proceeded to complete the disposal despite being informed by the sponsor of the need to consult the exchange for the disposal," said SGX RegCo.

According to the company, the disposal was part of its winding down of its oil and gas equipment supplies and services segment, allowing it to exit from its loss-making associate and facilitate the striking-off process for it in Malaysia.

SGX RegCo noted that the board at the time comprised Seet Chor Hoon and Lee Chong Ping, with Mr Lee proposed to be re-elected as a director at the upcoming EGM.