(Sept 25): Phua Chian Kin, group CEO and managing director of TEE International, has raised his stake in the construction firm. From Sept 14 to 19, he bought 365,600 shares to bring his total stake to 56.3%. This comes after a privatisation bid by his wholly-owned vehicle Oscar Investment was defeated by a shareholder vote on Aug 21.
In April, Oscar Investment attempted to delist and privatise TEE International via a scheme of arrangement. Shareholders were offered either 21.5 cents a share, a 12.6% premium over TEE International’s share price then, or one new ordinary share in Oscar Investment. In its offer document, Oscar Investment stated that it believed a delisting would give TEE International greater operation flexibility.
At the time of the offer, Phua owned 56.2% of TEE International. On Aug 21, shareholders controlling 74.8% of the company’s issued share base voted in favour of the scheme, below the required threshold of 75%.
Since then, Phua has been gradually accumulating shares in TEE International. He bought 100,000 shares at 20.5 cents each on Aug 22; 10,000 more at 19.8 cents each on Aug 31; 55,000 shares at 20.5 cents each on Sept 14; and 100,000 shares twice the following day at 20.5 cents and 20 cents apiece. On Sept 18, he acquired 100,000 shares at 20 cents each and the next day, a further 10,600 shares at 20 cents each.
TEE International has not been doing particularly well. For 4QFY2017 ended May 30, the company reported a 21.9% decline in revenue to $76.7 million. It also reported a loss of $2.2 million, versus earnings of $3.2 million in 4QFY2016.
The company reported a loss despite booking some revenue on a disposal of assets in 4QFY2017. On May 8, the company announced an agreement to sell its 37.2% stake in CMC Infocomm. The latter is a locally listed installer of in-building communications infrastructure. TEE International says it saw an opportunity to realise its investment, with the sale at a 35.77% premium to the one-month-weighted average price of the shares. TEE International will book an estimated $5.2 million in gains from the sale, which will be used as working capital.
TEE International also formed a strategic alliance with Advancer Global, a facilities management and employment services provider, on Sept 11. This alliance will explore new opportunities for joint tenders in contracts requiring mechanical and electrical works, as well as facility management services. The two companies will consider jointly investing in facilities management projects in Asia-Pacific. “Our strategic partnership with Advancer Global will stand us in good stead to broaden our horizon and expand into the facilities management business,” says Phua Boon Kin, deputy group managing director of TEE International, in a statement.
“Our combined expertise and strong track records will put Advancer Global at a more competitive position in the value chain of real estate facilities management, allowing us to better utilise our resources and creating value- added and specialised services for our customers,” says Gary Chin, CEO and executive director of Advancer Global. “This alliance will also bolster our confidence in pursuing new projects in the domestic market as well as expanding beyond the shores of Singapore.”
TEE International has received an extension from the Singapore Exchange for its deadline to hold an annual general meeting; the company now needs to hold its AGM by Nov 30, instead of Sept 30. TEE International had sought the extension as resources had been committed to the delisting and privatisation exercise, which later fell through.
“Further, due to cost reasons, the company had waited for the results of the scheme meeting held on Aug 21 at 9am before instructing its group auditors to commence audit on the group’s consolidated financial statements, as well as to obtain audit clearance from entities that are not audited by them,” the company says in an SGX filing.
