SINGAPORE (July 23): The three Tan brothers who helm Asiatic Group (Holdings), have issued a cease and desist letter against dissenting minority shareholder Jerry Low for making “false allegations” and republishing “unsubstantiated and scurrilous complaints” against the company.

The letter, sent by RHTLaw Taylor Wessing on July 23 and sighted by The Edge Singapore, represents Asiatic’s managing director George Tan Boon Kheng, and executive directors Tan Boon Yew and Tan Boon Siang. All three are sons of the company’s founder Tan Ah Kan.

It comes three days after Asiatic issued a similar cease-and-desist letter against Low for alleged defamatory remarks in a May 9 open letter criticising Asiatic’s management of its power plant business, and in emails to parties including Asiatic’s board, substantial shareholders Bobby Lim and Bernard Lim and the Singapore Exchange.

See: Asiatic Group moves to sue dissenting minority shareholder Jerry Low for defamation

The July 23 letter calls for Low to cease publication of defamatory statements against Low, and to remove his comments against the company.

It also requires Low to publish by July 25, an apology and undertaking in The Edge Singapore, The Business Times, his blog for Asiatic minority shareholders and other mediums through which he had disseminated his comments.

George, Boon Yew and Boon Siang are seeking compensation by way of damages, in addition to indemnification for the costs and expenses incurred by the company for its lawsuit.

The company is facing heat from Low, substantial shareholder Brian Chang and other dissenting shareholders over its high debt exposure to Maju Intan Biomass Energy, a biomass power joint venture, as well as the stock’s depressed returns. Low has also criticised the company’s family-run structure and executives’ remuneration.

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Chang owns 13.3% of Asiatic while Low owns a 1% stake. Ah Kan and his sons collectively own 25.1% of the company.

The Tans’ latest salvo against Low comes just days ahead of the company’s annual general meeting on July 26.

Shares of Asiatic closed at 1.1 cents on July 23.