The real prize in minority investor action at UOI could well be Haw Par Corp

WHEN former remisier Ong Chin Woo wrote to Great Eastern last year proposing to table resolutions at its annual general meeting (AGM) to address the steep undervaluation of its shares, the insurer sought legal advice and then announced that the request did not satisfy all the necessary requirements.

The Securities Investors Association (Singapore), or Sias, said Great Eastern’s response was “somewhat legalistic”, and that it appeared to “sidestep the substantive concerns raised”.

United Overseas Insurance (UOI) took a much more cordial tone when Ong wrote on Feb 28 asking for two resolutions to be tabled at its upcoming AGM.

Ong’s first resolution is that UOI distribute the nearly 4.3 million Haw Par Corporation shares it holds to its shareholders. His second resolution is that UOI appoint a financial adviser to evaluate strategic options to maximise shareholder value.

On Mar 3, UOI acknowledged Ong’s proposed resolutions, and said that its board and management welcomed constructive suggestions from its shareholders.