SINGAPORE (THE BUSINESS TIMES) - Restaurant operator Pavillon Holdings said in a bourse filing on Wednesday (Aug 3) that it will not be proceeding with an earlier request to hold an extraordinary general meeting (EGM) to oust its executive chairman John Chen Seow Phun and independent director Ko Chuan Aun from the board.
This comes after the realisation that the requisitioning shareholder, Seven Star Capital, had entered into a sale and purchase agreement for the disposal of all its shares in the company on July 29, and will hence cease to become a shareholder.
Accordingly, the company will no longer be proceeding with the requisitioned EGM, said Pavillon.
It will, however, carry on with a separate EGM on Aug 5 for the purpose of considering the proposed subscription of 1,047,218,560 new ordinary shares at the price of 4.1 cents apiece by New Development Hotel Management.
The EGM will be held at the Thai Village Restaurant outlet at Singapore Indoor Stadium at 3pm on Aug 5.
The letter from Seven Star Capital last month had been signed off by Mr Zheng Fengwen, a former executive director of Pavillon. It had also called for the company to appoint Mr Zheng and Mr Teo Kiang Ang as director and executive chairman respectively at the EGM. Mr Teo, the founder of taxi operator Trans-Cab and bottled cooking gas supplier Union Gas, owned 8.9 per cent of Pavillon as at July 5.
The company, formerly known as Thai Village Holdings, was set up in 1991.
Its financial leasing unit has had its bank accounts frozen since Monday, following a court order requested by the main contractor of Pavillon's automotive logistics hub in Tianjin, China.
Pavillon Financial Leasing, together with Fengchi IOT Management, another Pavillon subsidiary, had previously received a letter of demand for the repayment of 152.9 million yuan (S$31.2 million) in construction costs from the main contractor.
Shares of Pavillon traded flat at 4.2 cents as at 9.10am on Thursday.
• With additional information from The Straits Times