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SunMoon responds to SIAS, says it adheres to good corporate governance practices
SUNMOON Food Company's board said on Monday evening, in response to a letter from the Securities Investors Association (Singapore) or SIAS, that it is aware of the affairs of the group and adheres to good corporate governance practices.
SIAS had in early November raised concerns on a number of issues surrounding the restructuring and governance of the fruit distributor.
In an open letter, SIAS had sought clarification from SunMoon management on: a dispute between SunMoon chairman Gary Loh and a group of creditors in 2014 and 2015; a planned investment in China-focused fruit distributor Harvest Season Singapore; interested party transactions that involve companies owned by Mr Loh and his wife; SunMoon's disposal of its dehydrated business; and Mr Loh's remuneration and benefits.
In its 27-page response, SunMoon said the acquisition of Harvest Season was to enable the group to enter the China market.
"While the group has since made its foray into the China market and attracted the interest of Yiguo, the group continues to value Harvest Season as a strategic and valuable business partner in China," it said, adding that investors can read more in a circular to shareholders which will be despatched.
The letter also said the board recognises the efforts of Mr Loh in making significant contributions towards the group's debt restructuring, reducing its debt from S$49.3 million in 2008 to S$0.6 million last year, and rebuilding the company with a new strategic focus.
While thanking the group of shareholders who wrote in to SIAS to raise these issues, SunMoon added that any further questions can be addressed at the extraordinary general meeting and annual general meeting.