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Tee International receives public reprimand from SGX for failure to disclose claims against subsidiary

Bryan Wu
Bryan Wu • 3 min read
Tee International receives public reprimand from SGX for failure to disclose claims against subsidiary
The SGX-ST Listings Disciplinary Committee also reprimanded former group CEO and managing director Phua Boon Kin Eric. Photo: Tee International
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The Singapore Exchange S68 -

Securities Trading (SGX-ST) Listings Disciplinary Committee has issued a public reprimand of Tee International M1Z and its former group CEO and managing director Phua Boon Kin Eric for breaching Mainboard rules on Jan 18.

The regulatory action was in response to a failure to disclose claims served on Tee International’s wholly-owned subsidiary, Trans Equatorial Engineering, in December 2020.

The first claim, served by Fuji SMBE Technology on or about Dec 2, 2020, for the outstanding sum of $2,694,000 represents approximately 13.9% and 14.1% of the group’s net asset value (NAV) and cash equivalent balance (CCE), respectively.

Tee International also failed to disclose two other claims served by Power-Link Engineering on or about Dec 16, 2020, for the total sum of $5,115,127.51, representing approximately 26.6% and 26.8% of the group’s NAV and CCE, respectively.

In its statement, SGX-ST noted that the receipt of these claims necessitated disclosure on the part of Tee International in order to avoid the establishment of a “false market”.

The company was also found to have been in breach of placing adequate and effective systems of internal controls and risk management systems to monitor the claims received by the group and escalate such matters to its board for timely disclosure.

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In addition, the Listings Disciplinary Committee has required Phua to provide a signed written undertaking to SGX not to seek any directorship on the board of directors or role as a key executive officer of issuers whose securities are listed on the SGX Mainboard or Catalist for a period of two years starting from Dec 11, 2023.

On Jan 12, Tee International received a delisting notification from SGX Regulation (SGX RegCo) after failing to provide substantive details of its proposed acquisition of Carats&Co, which would enable it to operate as a going concern and enable trading resumption.

In its delisting notification, the SGX RegCo noted that shares in Tee International had been suspended since June 18, 2021, and that the company had not met the requirements of Listing Rule 1304(1) of the SGX-ST to submit a proposal to resume trading in its securities within 12 months of the date of its suspension and the extended timeline of April 30, 2023.

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Shares in Tee International will remain suspended until its delisting on Feb 10.

Tee International says its board is currently reviewing the delisting notification and is preparing additional information to address the exchange’s concerns with the intention to submit an appeal to SGX RegCo.

Shares in Tee International last traded at 3.2 cents.

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