Sias asks Asti board about possibility of exit offer, raises other concerns

THE Securities and Investors Association (Singapore), or Sias, is asking the board of Asti if it could “confirm an exit offer”, while also raising questions based on various shareholder concerns.

This comes weeks after the watch-listed semiconductor company on May 14 announced that it had received an unsolicited, non-binding letter of intent for its acquisition by a consortium of two unnamed parties.

In a letter dated Friday (May 26), Sias founder and chief executive David Gerald asked how the potential offeror was introduced to the group, and who was responsible for leading the negotiation with the consortium.

Gerald wrote: “Given that the potential offer is non-binding, are the independent directors exploring other avenues to maximise shareholder value, given that the Singapore Exchange has issued the company the notification of delisting?”

Beyond the potential offer, Sias also flagged shareholder concerns over how Asti failed to hold its FY2021 annual general meeting (AGM) even after being granted an extension to do so by Sep 7, 2022.

The last AGM held by the company was in May 2021, for its financial year ended 2020.

Additionally, Gerald questioned the company’s recent appointment of Charlie Jangvijitkul as its board’s non-executive independent director considering how the company is “faced with regulatory challenges”, and that Jangvijitkul will be required to attend training as a first-time director. 

He requested more details regarding a proposed sale transaction of over 130.2 million shares of Asti, or 19.89 per cent of the company, by Michael Loh.

Loh previously spent more than eight years as Asti’s chief executive before he was retrenched from his position in December 2021. He subsequently resigned as director and chairman of the company in February this year, citing personal reasons.

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“What is the current role of Michael Loh Soon Gnee in the group?” asked Gerald.

“We should be grateful if the board can answer the above questions on behalf of your concerned shareholders.” 

Shares of Asti have been suspended from trading since Jul 5, 2022.