Former minister George Yeo has stepped down from Wilmar International's board in order to make way for additional independent non-executive directors.
The palm oil producer has appointed former GIC group president Lim Siong Guan and Hong Kong-based PAG chairman and chief executive Shan Weijian as independent directors.
Mr Yeo, a non-independent non-executive director, had to step down so that the firm can comply with the recommendation in the Code of Corporate Governance 2012, said Wilmar.
This stipulates that for companies where the chairman and chief executive are the same person, at least 50 per cent of the board should be independent.
Mr Yeo's resignation takes effect from Dec 31, while the appointment of the two new directors takes effect from Jan 1. With these changes, Wilmar will have two executive directors, four non-independent non-executive directors and six independent directors.
Natural rubber supplier Halcyon Agri is buying yet another crumb rubber factory in Indonesia, this time in Bintan.
The group said yesterday that its Indonesian subsidiary PT Hok Tong has entered into a conditional share sale-and-purchase agreement with Global Key Holdings Limited (GKHL) and Lydia Yuliaty Tandi to buy an 80 per cent stake in PT Pulau Bintan Djaya (PBD).
The purchase consideration was not disclosed, but the 80 per cent stake has a net asset value of about US$600,000 (S$811,000) as of Dec 31 last year.
PBD, founded in 1967, produces Standard Indonesian Rubber. It has a capacity of 60,000 tonnes a year and is an approved supplier to major tyre companies, including Goodyear, Bridgestone, Cooper Tires and Michelin.
Under the agreement, Hok Tong has also agreed to grant to GKHL an irrevocable put option for two years. The option will require Hok Tong to acquire the remaining 20 per cent stake in PBD on the same terms and conditions as those for the sale and purchase of the 80 per cent stake.
This move came just a day after Halcyon announced that it was buying four Indonesian crumb rubber factories in West Kalimantan, Indonesia, for $105.3 million in cash.
That acquisition will increase the scale and scope of Halcyon Agri's natural rubber processing segment, and propel it to being the largest crumb rubber producer and exporter in Indonesia, with a total processing capacity of 1.55 million tonnes per year, the firm said.