Shareholders push Koh Brothers for in-specie distribution of Oiltek stake

[SINGAPORE] Mainboard-listed Koh Brothers Group is facing a push from a group of shareholders seeking a direct slice of the group’s listed holdings.

The group on Wednesday (Mar 25) received a requisition from certain shareholders for a resolution to distribute Oiltek shares in specie to its shareholders.

The proposal targets the group’s interest in mainboard-listed entity Oiltek International through a two-step process.

The requisitioning shareholders want the group to get its 54.8 per cent-owned subsidiary, Koh Brothers Eco Engineering , to distribute its entire 97.4 million Oiltek shares to Koh Brothers Eco shareholders, including its parent Koh Brothers.

After receiving its majority portion of those shares from the engineering arm, which is also mainboard-listed, Koh Brothers Group would then pass them directly to its own shareholders on a pro-rata basis, according to the plan.

Shares of Koh Brothers Eco climbed as high as 8.6 per cent in the first two minutes of trading on Thursday, rising S$0.007 to S$0.088, with nearly seven million shares transacted.

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Koh Brothers Group climbed as high as 4.9 per cent in early trading, while Oiltek rose 3.7 per cent in the first 38 minutes of trading.

The board, led by Koh Brothers Group executive chairman and group CEO Koh Keng Siang, is seeking legal advice to determine if the requisition notice is valid and legally binding before deciding on its next steps.

In the meantime, the company urged its shareholders to remain cautious and wait for further material developments as the board evaluates the request.