Silverlake to explore buying executive chairman's private entities

INDEPENDENT directors of software firm Silverlake Axis said on Wednesday the company should explore a proposal by executive chairman Goh Peng Ooi to sell his private entities to the company.

The company said it has responded to Mr Goh by submitting a non-binding letter indicating its interest to further explore the opportunity.

"The company intends to engage professional advisers to assist in its evaluation and will keep the shareholders informed of any material developments in this regard," Silverlake managing director Kwong Yong Sin said. "Shareholders are, however, cautioned that the proposal is still at a very preliminary stage," he said.

The proposal and its response come 11/2 years after the company, which provides software services to banks, was hit hard by a shortselling report alleging how the group of private companies operated by Mr Goh had engaged in transactions with Silverlake which inflated its results.

Silverlake closed at S$0.56, down half a cent, before its latest announcement on Wednesday.