SINGAPORE - A group of investors who were brought on board to shore up the finances of Cedar Strategic Holdings last year are taking action to throw out the directors.
Jadiete Capital, SinoWealth Capital and Mr Christopher Chong Meng Tak have requisitioned for an extraordinary general meeting to remove four directors and appoint three of their nominees to the board.
The investors, who collectively own 1.27 billion shares representing more than 16 per cent of the issued capital of Cedar Strategic, want the meeting to be held on May 12.
Their April 12 letter to the company demanded the removal of chairman Charlie In Nany Sing and directors Huang Chuan, Yang Luoqing and Teo Moh Gin.
They also put up a slate of candidates which included Mr Chong himself as well as Mr Tan Thiam Hee and Mr Peter Tan.
In February last year, Jadiete, SinoWealth and Mr Chong subscribed for 1.27 billion Cedar Strategic shares that came with 1.27 billion free warrants for $4.6 million. The proceeds were earmarked for real estate development but the plans have unravelled.
Last week, Cedar disclosed it was engaging an independent auditor to review its accounts for the 2013 and 2014 financial years to uncover any potential irregularity.
Formerly China Titanium, the company was renamed Cedar Strategic in 2012 as it switched its focus to property businesses.
It acquired Trechance Holdings in 2013, which has various property development and management units in China.
But the venture has failed to take off. Two months ago, the company announced that it will sell its shares in Trechance.