Singapore

THE co-founders of Fu Yu Corp have sold a 29.8 per cent stake, amounting to 224.4 million shares in the company, for S$58.3 million to local fund management firm Pilgrim Partners Asia.

Based on the precision plastic components maker's share sale agreement with the firm, Ching Heng Yang, Ho Nee Kit and Tam Wai have retired from their board positions at Fu Yu with effect from Jan 18.

The trio are co-founders of the company, which was established in 1978. Mr Ching has since resigned as vice-chairman of Fu Yu's board. Together with Mr Tam and Mr Ho, he has also stepped down as an executive director of the company.

In its late-night filing on Monday, Fu Yu said the three men have been "pivotal to the development of the group, which has grown into one of the largest manufacturers of precision plastic products in Asia today".

"The board would like to take this opportunity to express its heartfelt appreciation to the founders for their dedicated service and invaluable contributions as directors during their tenure of service," it added.

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With the retirement of its co-founders, Fu Yu has named Choo Boon Tiong in place of Mr Ching as vice-chairman of the board and executive director of the company. David Seow Jun Hao was appointed executive director of the company, while Haytham T KH S Al Essa was appointed as an independent director of the company. All three new appointments are effective Jan 18.

Fu Yu's divestment and board changes were announced after the company called for a trading halt on Monday upon being queried by the Singapore Exchange for "unusual price and volume movements" in the firm's shares, which saw the counter spike 23.2 per cent or 6.5 Singapore cents to an intraday high of 34.5 cents at around 4pm.

Trading of Fu Yu shares resumed on Tuesday and closed 2.5 Singapore cents or 8.1 per cent lower at 28.5 cents.