WBL break-up sparks questions at OCBC AGM

Singapore

THE break-up of WBL Corporation just two years after OCBC affiliate United Engineers (UE) took full control of it was the topic of the first set of questions targeted at the OCBC board at the bank's shareholders' meeting on Tuesday, even as OCBC chief executive said the bank was in no hurry to offload its UE stake.

Consciously or not, the name of Chew Gek Khim - the head of The Straits Trading Company who eventually walked away from the takeover bid for WBL initiated by her company - came up at the annual general meeting (AGM), as one shareholder asked why the board had no female directors. A shareholder named Mr Smith sought "the point" of UE buying WBL, when parts of WBL were then sold soon after. Last year, WBL sold its mainboard-listed MFS Technology and, later, Wearnes Automotive.

OCBC owns about 20 per cent of UE directly and through Great Eastern Holdings. They also own about 25 per cent of WBL together. The bank tried to sell its stakes to Thailand's beer tycoon Charoen Sirivadhanabhakdi this year, but talks ended as the parties could not agree on the price.

Responding, OCBC CEO Samuel Tsien told shareholders the bank is not in a hurry to sell UE stake, but reiterated UE stake is a non-core asset. He noted that the move to take control of WBL in 2013 was driven by a need to protect OCBC shareholders' interest. Straits Trading's bid was viewed by a financial adviser as unfair.

Another shareholder brought up the name of Ms Chew - who clinched the top business award at the Singapore Business Awards (SBA) this week - to argue that more female directors should be on the OCBC board. (SBA is jointly organised by The Business Times and DHL Express Singapore.) "Not only are they men, they are old men," he said, referring to some directors.

OCBC's current chairman, Ooi Sang Kuang, who took over from Cheong Choong Kong last year, drew that oft-cited parallel between men and wine, and pointed to the directors' wealth of experience.

A shareholder named Mr Tan also asked if banks such as OCBC were perpetuating the "musical chairs" of fund movement as they offer promotional rates that lapse, wondering if they were building long-term relations.

"It would not be economical," Mr Tsien said on lengthening promotions, but added the lender aims to lock in depositors with a broader range of services. Mr Tan then urged Mr Ooi to visit the branches more often, quipping that Dr Cheong could not do this because he would be recognised. Dr Cheong has acted in TV dramas, and is the former chief executive of Singapore Airlines.

All resolutions were passed.

This marks the last of banks' meetings with shareholders. UOB last week said it would pace its investment in technology, while DBS said it would be committed to its "first wife", POSB.