WATCH-LISTED semiconductor company Asti said on Thursday (Apr 20) that a proposed extraordinary general meeting (EGM) by its shareholders &ndash Ng Yew Nam, Lim Chee San, Toh Cheng Hai and Ng Kok Hian &ndash would be invalid.

 

The company urged shareholders not to attend the EGM, and that even if any resolutions were to be passed, they would be deemed invalid.

 

Asti said this is because the requisitioning shareholders did not despatch printed copies of the EGM&rsquo s notice at least 21 days before May 5 &ndash the day the EGM is due to be convened.

 

It added that it obtained &ldquo written confirmation&rdquo from the requisitioning members&rsquo lawyers that as of Apr 17, no such printed copies of the notice had been distributed to shareholders.

 

Given that the proposed EGM had not been properly called for, Asti&rsquo s board of directors deemed the proposed meeting as invalid.

 

This follows the company&rsquo s announcement on Apr 4 that it was aware of a group of shareholders &ndash who collectively held at least 10 per cent of Asti&rsquo s shares &ndash calling for an EGM to remove some directors of the company and appoint new ones.

 

The requisitioning shareholders sought to remove Kriengsak Chareonwongsak, Ahmad, Rasidi Bin Hazizi, Sri Mohd Sopiyan B Mohd Rashdi and Anthony Loh, who are currently directors of Asti. In turn, they intend to elect five new directors onto the board, including Ng Yew Nam, Soh Pock Kheng, Sho Kian Hin, Chow Wai San and Yap Alvin Tsok Sein, at the EGM.

 

The meeting was scheduled for 10 am on May 5.

 

Asti Holdings 575 0.00%   announced earnings of $4.8 million for FY2022 ended Dec 31, 2022, a reversal from the loss of $3.9 million it recorded in the same period a year ago.

 

This comes on the back of revenue gaining 23.4% y-o-y to $67.0 million from $54.3 million last year. This is mainly due to higher revenue from the group&rsquo s tape & reel packaging services contributed by Philippines operations.

 

Gross profit margin dropped by 1 percentage point (ppt) 28% from 29% last year.

 

Overall expenses also saw a decline, with administrative expenses dropping 33.2% y-o-y to $11.0 million and other expenses declining by 95.4% y-o-y to $182,000.

 

As at end-December, cash and cash equivalents stood at $25.9 million.

 

With the group churning earnings this year, it has declared a dividend of 0.45 cent per share, compared to none in the same period a year ago.

 

See also: Kingsmen Creatives reports earnings surge of $4.6 mil for FY2022 after ' strong' 2HFY2022 performance

 

To recap, the group has been on the Singapore Exchange (SGX) watch list since June 6, 2019. It had said it will be delisted from SGX after failing to meet the requirements for exiting the watch list.

 

Asti Holdings, which is on the watch list of the SGX-ST, announced on June 6, that it will be delisted from the SGX after failing to meet requirements for exiting the watch list.

 

Semiconductor manufacturing services company Asti Holdings, on Dec 16, announced the termination of the proposed disposals of its subsidiaries, Micro View Technologies and EoPlex.

 

The termination was due to certain conditions that had not been fulfilled as at Dec 16. As a result, the company and the purchasers of both subsidiaries had mutually agreed not to proceed with the disposals.

 

The company had entered into two separate sale and purchase agreements (SPAs) with their subsidiaries&rsquo respective purchasers on Nov 3, 2021, and Dec 18, 2021.

 

The SPA for Micro View Technologies was entered into with Roslan Bin Affandi, who would have purchased the entire stake of Micro View Technologies amounting to 2.5 million shares at a nominal consideration of $1.

 

Roslan was previously the vice president of Eoplex Group & Telford Malaysia&rsquo s operations department. He had left the group on Sept 30, 2021.

 

The SPA for EoPlex was entered into with Instern, where the latter would have purchased an 85% stake amounting to 300 million shares, again at a nominal consideration of $1.

 

Instern is wholly-owned by Roslan.

 

According to Asti Holdings, both Micro View Technologies and EoPlex were not generating revenue, as at the time of their proposed disposals.

 

Asti Holdings, which is on the watch list of the SGX-ST, announced on June 6, that it will be delisted from the SGX after failing to meet the requirements for exiting the watch list.

 

The company has been on the list since June 6, 2019.

 

Trading of the company&rsquo s shares have been suspended since July 5 until the completion of the exit offer.