Lim How Teck, lead independent director of Raffles Education, has bought one million shares of the company from the market earlier today (Oct 12) at 8.8 cents each, doubling his stake to two million shares.
Lim, a former executive director of Neptune Orient Lines, bought the shares days after the company on Oct 8 disclosed that its auditors flagged material uncertainty on the education provider’s ability to continue as a going concern, given how its liabilities for year ended June 2021 is greater than current assets by nearly $200 million.
In the same announcement, Raffles Education said its net current liabilities position “will not likely pose material uncertainty” on itself as a going concern.
This latest development in the former investors’ favourite is taking place amid a multi-year fight between Chew Hua Seng, the company’s founder and CEO, and tycoon Oei Hong Leong, who has built up a position as the company’s second largest shareholder.
Oei, banking on his stake of more than 10%, has tried multiple times to ask for an EGM to be held so that he can oust Chew.
Oei has alleged that Chew did not make good his promise to find a buyer to take from Oei his stake in Raffles Education at 44 cents per share.
Meanwhile, the company has been served with a RM410 million writ and statements of claim by Affin Bank in Malaysia, for a loan taken out by Raffles Education’s subsidiary.
The filing was made in May but the disclosure was made only in July.
2004 file photo of Lim How Teck / The Edge Singapore