(May 4): Minority shareholders of Challenger Technologies demonstrated what they are most irritated about when they voted at the company’s annual general meeting on April 29.

Resolution 2, which called for the payment of a final dividend of two cents per share for FY2018, was passed with the lowest support – 91.10% for, and 8.90% against. The second least popular resolution was Resolution 7, which provides the board with authority to issue shares and convertible securities – 91.43% for and 8.57% against. At the other end of the spectrum, Resolution 1, which was to receive and adopt the audited financial statements for FY2018, was the most popular –99.89% for and 0.11% against.

Challenger’s dividends became an issue after the company announced on March 20 that it plans to delist from the Singapore Exchange, with an exit offer price of 56 cents per share. If Challenger succeeds, will end up being 100% owned by a Digileap Capital, a Cayman Islands company that is 70%-held by the Loo family and 30%-held by fund run by Dymon Capital Asia. But Challenger had a net cash position of $63.2 million as at end-2018, equivalent to almost one-third of its entire market value. Challenger also reported higher earnings of 5.64 cents per share for 2018, versus 4.63 cents per share for 2017. Yet, the company declared total dividends of only 3.1 cents per share for 2018, compared with 3.3 cents per share for 2017.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook