United Overseas Insurance (UOI) says it is “reviewing” minority shareholders’ proposed actions to table resolutions at the company’s upcoming annual general meeting in April, and will make further announcements “as and when appropriate”.
In a March 3 bourse filing, UOI says a shareholder has contacted the company “claiming to act on behalf of these minority shareholders”. “As the company understands, these proposed resolutions pertain to distribution of shares in Haw Par Corporation held by the company to its shareholders, and appointment of a financial adviser to explore options to unlock shareholder value”.
“The company would like to assure shareholders that the board and management welcome constructive suggestions from shareholders. The company is reviewing the matter and will make further announcements as and when appropriate,” reads UOI's response.
The Edge Singapore reported on Feb 28 that activist value-investor Ong Chin Woo had written to UOI’s board proposing to distribute UOI’s 4,274,600 ordinary shares in Haw Par Corporation directly to UOI shareholders and to appoint a financial adviser.
Ong, who claims to represent shareholders holding 5% of UOI’s issued shares, says UOI holds 4.274 million Haw Par shares comprising 6.58% of UOI’s total assets, 9.35% of its shareholders equity and 27.71% of UOI’s equity investments.
“Distributing Haw Par shares could help mitigate UOI’s investment concentration risk while preserving cash to support the company’s operational and expansion risk,” says Ong.
See also: Minority investor says UOI is over-capitalised and should distribute Haw Par as dividend-in-specie
Shares in UOI were trading 8 cents higher, or 1.08% up, at $7.48; while shares in Haw Par were trading 2 cents higher, or 0.16% up, at $12.73 prior to the midday break on March 3.
