Loh cousins behind Newcastle bid to split business interests

Terence Loh quits Bellagraph Nova; Nelson Loh quits Novena Global Healthcare amid probe

Cousins and former business partners Terence (far left) and Nelson Loh pictured in 2018. Mr Terence Loh said yesterday that a "separation agreement" was entered into between them on Tuesday.
Cousins and former business partners Terence (left) and Nelson Loh pictured in 2018. Mr Terence Loh said yesterday that a "separation agreement" was entered into between them on Tuesday. ST PHOTO: ONG WEE JIN

Novena Global Healthcare Group co-founders Terence Loh and Nelson Loh have agreed to legally separate all their business interests as the scandal dogging them and their web of companies intensified.

The latest twist involves the Singapore police opening an investigation into the Cayman Islands holding company.

The Straits Times reported last month that accounting firm Ernst & Young (EY) had lodged a police report regarding allegedly unauthorised audit signatures on some of Novena Global Healthcare's financial statements. EY said it did not sign off on the financial statements.

Mr Terence Loh said yesterday that a "separation agreement" was entered into between the cousins and former business partners on Tuesday.

Mr Nelson Loh, whose whereabouts are unknown, did not issue a statement.

The agreement involves Mr Terence Loh transferring all his shares in Singapore-registered Bellagraph Nova (BN) Group to Mr Nelson Loh for $1 and resigning as its director.

Mr Nelson Loh will transfer all his shares in three corporate entities - Novena Global Healthcare and all its subsidiaries, Singapore-registered Dorr Global Healthcare International and Singapore-registered Rock Star Advisors - to Mr Terence Loh for $1. He will also resign as director of the three entities.

"This is a mutually agreed and legally binding document which clearly separates the business interests that Nelson and I have been involved in since 2008," said Mr Terence Loh. "We have gone through many challenges together and the time has come now for each of us to chart our separate careers and pursuits."

The Lohs will complete the share transfers and resignations of directorships by Nov 5. Mr Terence Loh said in his statement that the separation agreement "provides clarity for me to resolve legal and corporate issues of the businesses transferred to me".

"In relation to the alleged forgery of the accounts of Novena Global Healthcare, I unequivocally state that I was not involved in the forgery. I have remained in Singapore and continue to be available to assist the Commercial Affairs Department."

BN Group issued a statement early yesterday morning saying that it "understands that Mr Terence Loh is trying to solve problems (arising) from Novena Global Healthcare's incident, so we had mutually agreed that (he) should resign from BN Group".

"BN group has never consolidated, or is by any chance, linked to Novena Global Healthcare and its forged financial statements," it said.

Mr Terence Loh countered: "The role that others have played in the current difficulties will become, in due course, clear."

BN Group chairman Evangeline Shen and the Loh co-founders made headlines in August on their reported £280 million (S$491 million) takeover bid for English Premier League club Newcastle United.

But the ambitious bid soured quickly after doctored photographs featuring them and former United States president Barack Obama as well as inconsistencies in publicity materials surfaced.

Media reports earlier this month cited Ms Shen claiming that BN Group was still pursuing a takeover of Newcastle United.

"Nelson acknowledges that... (Terence Loh's) views and approval as a director of BN Group were not sought prior to" Ms Shen's comments on the continued bid, Mr Terence Loh said.

Mr Nelson Loh also "acknowledges that he remains liable on all guarantees that he executed despite the separation of interests" as set out in the agreement.

Other firms linked to the Lohs have also come under scrutiny, including Axington, a Catalist-listed company owned by the Lohs.

The photo scandal and other disclosures have prompted the Singapore Exchange's regulatory arm to call for an assessment of Axington's directors for their "experience, expertise, character and integrity".

This sparked a slew of board member resignations, starting with independent director and former US ambassador to Singapore Kirk Wagar.

Matters were compounded when a deal that was meant to kick off Axington's move to change its core business and expand into the medical and consumer wellness sector fell through. This came after shareholders nixed its proposed buyout of Malaysia-based medical products distributor Vesta Apex Trading, the company said on Oct 2.

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on October 08, 2020, with the headline Loh cousins behind Newcastle bid to split business interests. Subscribe