STAMFORD Land : TBMR 0%’s controlling shareholders will donate S$2 million to the Singapore Exchange (SGX) Investor Education Fund, as part of a resolution between both parties over an issue regarding the former’s allocation of rights.

The mainboard-listed company had in December 2021 announced plans to raise S$238.9 million via a renounceable non-underwritten rights issue.

In February 2022, the application results of the rights issue were announced, as well as the allocation of rights shares for excess applications.

In deciding the allocation of excess rights, the company had relied on its lead manager UOB’s professional advice, which stated that minority shareholders should have priority over directors and controlling shareholders.

But not all the applications by the minority shareholders were fully satisfied before allocating excess rights shares to the company’s directors and controlling shareholders, said SGX and Stamford Land in a joint statement on Friday (Dec 15).

SGX reiterated its position that the listing rules seek to prevent conflicts of interest by requiring persons who can influence the allocation of excess rights shares to be last in priority to receive said shares.

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The rules also make clear that controlling shareholders and directors are entitled to receive excess rights shares only after the excess rights applications by minority shareholders have been fully satisfied.

In addition to the joint statement, SGX has also put out a regulatory column stressing that minority shareholders should have priority in the allocation of excess rights shares.

Shares of Stamford Land closed flat at S$0.385 on Friday, before the announcement.