Press Release: Koh Brothers’ AGM on 29 April 2025

Date: April 25, 2025

For the attention of shareholders and management

The Securities Investors Association of Singapore (SIAS) would like to draw the attention of shareholders to Koh Brothers’ (KB’s) upcoming Annual General Meeting (AGM) due to be held on 29 April 2025.

Shareholders should note that two additional resolutions proposed by three minorities who collectively own more than 5% of KB have been accepted by KB and will be discussed and voted upon at the AGM.

SIAS would first like to commend the management and Board of KB for adding on these proposals as it demonstrates a willingness to be receptive to suggestions from shareholders that could enhance value for all stakeholders.

The two proposals are:

1. That KB’s 54.8%-owned subsidiary Koh Brothers Eco Engineering (KBE) distribute all the shares it owns in Oiltek International, which recently received in-principle approval to transfer its listing from Catalist to the Mainboard, to KBE and then onto KB shareholders.
2. To appoint a financial adviser to explore options to unlock shareholder value.

With regards to the issue of unlocking shareholder value, SIAS would like to point out the following concerns which have been shared by KB shareholders:

1. KBE, which contributes the large majority of KB’s revenue, has reported losses in recent years, management should look into it and address KBE’s performance.
2. That KB has no ongoing property developments and its sole hospitality asset, Oxford Hotel, is a 130-room hotel which has poor ratings on hotel booking websites whilst on Tripadvisor, the hotel is ranked #342 out of #353 hotels in Singapore.
3. Whether it’s opportune to consider selling its stake in Sun Plaza, given that capital values are currently high, using the recent sale of Northpoint for reference.
4. Whether or not KB’s board size of 9 directors (compared to a much larger blue chip like DBS which has 10 directors) is excessive and whether some of the directors, who sit on boards of companies that operate in the same industry as KB, are conflicted.

 

Last but by no means least, SIAS notes that the KB’s ultimate 37.35% share of Oiltek is worth about $67m versus its own market cap of $58m which suggests the market does not have an overly positive view of KB.

Shareholders of KB are encouraged to attend the AGM on 29 April 2025, 3pm at Dunearn Ballroom III , Level 1, Raffles Town Club or submit the proxy form to vote by 26 April 2025 at 3pm.

SIAS hopes that the upcoming AGM will offer a platform for management to address these issues, engage shareholders constructively and to take active steps to unlock shareholder value.

 

David Gerald
Founder, President and CEO
SIAS