TEE International's controlling shareholder to sell 23% stake in group

TEE International's controlling shareholder Phua Chian Kin has entered into a binding term sheet to sell 150 million shares in the company, representing a 23 per cent stake, for a total of S$9 million in cash or S$0.06 per share.

Following the transaction, his direct interest in the company will be 16.24 per cent while his deemed interest will be 6.37 per cent. Mr Phua, who has been in the spotlight for allegedly instructing unauthorised transactions totalling S$6.55 million made by TEE International subsidiaries to related parties, told the board that he has no intention of selling his balance shareholding.

The completion of the proposed sale is subject to certain conditions and is expected to take place on or before Oct 31, 2019, said TEE International on Monday.

Mr Phua is currently group chief executive and managing director. He lost his majority stake in TEE International after forced sales of three tranches of shares under his direct interest, separately by three institutions to whom he had pledged parts of his shareholdings.

The forced sales happened after the unauthorised transactions came to light. RHB Securities forced sold nearly 41.52 million shares, DB Nominees (Singapore) forced sold 21.88 million shares, and SBS Nominees forced sold 18.81 million shares. Prior to this, Mr Phua's direct interest was 51.95 per cent and deemed interest, 6.37 per cent.

TEE International on Monday evening requested to lift the trading halt in its shares shortly after announcing the proposed sale of Mr Phua's shares.

Trading in the group's shares has been halted since Sept 12, following which TEE International announced the appointment of PricewaterhouseCoopers Risk Services Pte Ltd as an external investigator to look into the unauthorised transactions.

The counter last traded at 3.5 Singapore cents.