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Certain Koh Brothers shareholders want distribution in specie of Oiltek International shares

The Edge Singapore
The Edge Singapore • 2 min read
Certain Koh Brothers shareholders want distribution in specie of Oiltek International shares
Last April, Koh Brothers received a similar request ahead of its previous AGM but the resolution did not pass
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Koh Brothers Group has again received request from unnamed shareholders who are eyeing a distribution in specie of shares of its indirect subsidiary, Oiltek International.

Oiltek, as indicated in its FY2024 annual report, is 68.14% held by Koh Brothers Eco Engineering, which in turn is 54.81%-held by Koh Brothers.

Specifically, the unnamed shareholders want Koh Brothers to "take all necessary steps" to procure Koh Brothers Eco Engineering to distribute in specie all of its 97,445,805 shares in Oiltek to Koh Brothers Eco Engineering shareholders, and then, Koh Brothers, upon receipt of the Oiltek shares via its stake in Koh Brothers Eco Engineering, to similarly distribute the Oiltek shares to Koh Brothers shareholders.

Koh Brothers, in its March 25 announcement, did not name the shareholders nor the quantum of their stake.

Last April, Koh Brothers received a similar request ahead of its previous AGM.

According to the requisition notice posted by Koh Brothers on the SGX website then, Morph Investments, Ong Sze Wang, Chin Phak Lin, controlling around 21 million shares between them, were the shareholders who wanted this resolution added to the meeting agenda.

See also: HGH Holdings disposes of 20% stake in subsidiary Premium Concrete for $2.4 mil

The resolution did not pass with 42.16% for and 57.84% against.

Oiltek International, based on its March 25 closing price of 96 cents, has a market cap of more than $407 million.

Koh Brothers Eco Engineering is valued at $228.28 million based on the same day closing price of 8.1 cents whereas Koh Brothers' own market cap is just $131.36 million, based on the closing price of 31 cents.

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