An independent director of a tuna canning firm, Alliance Select Foods Intl, said on Tuesday company majority owners were raising additional capital, which in effect dilute their shares in the canned seafood exporting firm.
Hedy Chua, a Singaporean, who holds 24 percent stake in the company, said the majority directors should present their plans to the board before they seek new capital or get loans for working capital.
“They (main board of directors) never approached us when they engaged in capital raising activities . . .There was lack of information. When we invested in this company, we have hopes. But we were always disappointed,” Chua said in a news conference.
Alliance Select Foods raised $12.9-million last year from the sale of 500 million un-issued shares to investment fund firm Strong Oak Inc. The sale reduced Chua’s stake to 24 percent from the initial 34 percent interests.
The transaction also resulted in the ouster of Albert Hong Hin Kay, another Singaporean independent director. The two Singaporeans filed a case at the Pasig Regional Trial Court in May last year.
Chua’s lawyer, Agustin R. Montilla IV of law firm Romulo Mabanta Buenaventura Sayoc & de los Angeles, they were still waiting for the courts’ directive before they can present evidences that can nullify the Alliance Select-Strong Oak transaction.
Montilla said the company has applied for loans from different banks — Land Bank, Bangkok Bank, Philippine Business Bank, Sterling Bank, Amalgated Investment Bank, OCBC, RCBC, Development Bank of the Philippines, and Philippine Veterans Bank — without detailed explanation where the funds will go.
“They did not explain how it will benefit the company. Also after the Strong Oak investment, the company is again asking for money from shareholders,” Montilla said.
“Without the release of the 2014 audited financial statements, how can we evaluate that? They are pushing investors to either put the money, or be diluted some more,” he said.