Neo Group shareholders vote yes on property business diversification

CATALIST-LISTED caterer and food manufacturer Neo Group can now expand into the property business, with shareholders having unanimously approved the diversification at an extraordinary general meeting (EGM) on Thursday morning.

Shareholders representing about 124 million shares voted in favour of the move, with no votes against the resolution, according to ballot results released after the market close. No party was required to abstain from voting.

Neo Group last month announced plans to go into property development, investment and management, through a joint venture (JV) with Catalist-listed Boldtek Holdings. It will hold a half-stake in a JV company with an initial share capital of S$1 million.

The board had said the move could open revenue streams from rent and management fees, synergies with Neo Group's other businesses.

But Neo Group is still looking for opportunities in its core catering and food manufacturing business, and the board does not expect any immediate or significant change in the company's overall revenue mix at this stage.

DrewCorp Services served as the appointed scrutineer for the EGM, which was held electronically.

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Separately, independent director Kevin Ng retired at the annual general meeting, vacating the role of remuneration committee chairman. The move leaves Neo Group with just two independent directors, while the audit committee is short of the three-member minimum.

Mr Ng, 53, had been a director since June 2012. Listing sponsor CIMB is satisfied that there are no undisclosed reasons for his departure, said the board.

It added that there are no unresolved differences in opinion on material matters, or other issues that should be brought to shareholders' attention.

The counter closed at S$0.49 on a cum-dividend basis, down by S$0.02 or 3.92 per cent.