SINGAPORE (Feb 27): A group of shareholders in telecom and IT service provider, S i2i, are demanding “urgent action” from the company to ensure that shareholder value is preserved.

A letter dated Feb 21 and issued by the shareholder group by the name of Blue Ocean Capital Partners was sent to S i2i’s board of directors, highlighting that it has nearly two years since the company was placed on the Singapore Exchange’s (SGX’s) watch list.

The company on Nov 26 last year announced that it had applied for a 12-month extension of the initial deadline to 3 Mar 2018, which was approved by the bourse.

“Clearly, time is not on the company’s side should the board wish to formulate a viable plan to satisfy the listing manual requirements [and hence be removed from the watch list],” writes Blue Ocean Capital Partners in the letter.

As such, the group is requesting for a voluntary general offer (VGO) by Bhupendra Kumar Modi, S i2i’s chairman and single largest shareholder, at the offer price of $3.77 per share based on its net tangible assets of $51.73 million as at Sept 30, 2016.

Should Modi decline to carry out the VGO, the group believes it is “in the best interests of all shareholders of the company” to undergo an orderly winding down through the disposal of its assets.

Additionally, to avoid the risk of a “fire sale” of the company’s assets at distressed prices, the group says a reconstitution of the board is necessary during the winding down of the company.

This will involve the stepping down of S i2i’s current directors Ashok Kumar Goyal, Doraraj S, Tushar s/o Pritamlal Doshi and Chada Anitha Reddy, who the group says will have to voluntarily resign within seven days from the date of the letter, i.e. Feb 28 or tomorrow Tuesday.

Daniel Lin and Loo Cheng Guan, the associate director and founder/chairman of Blue Ocean Capital Partners respectively, have been identified to be appointed in place of S i2i’s current directors.

“S i2i’s shareholder value has unwittingly been severely impacted by the lack of a clear and cogent turnaround plan. In the last two years S i2i has been placed on the SGX watch list and is in imminent danger of being suspended and possibly delisted”, comments Loo in a media release on Monday, which was e-mailed to The Edge Singapore with a copy of the letter attached.

“For long-forebearing shareholders, the remaining value, if left disregarded, runs the risk of being destroyed altogether under the stewardship of its current board of directors. To make way for change for the better in the spirit of good and responsible corporate governance, either the current major shareholder should make a voluntary general offer to shareholders or allow for newly appointed directors to maximise shareholder value,” he adds.

As at 4:38pm, shares of S i2i are trading 3.11% higher at $2.32.