Published June 26, 2009

SingTel board member held StarHub shares

By NISHA RAMCHANDANI

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(SINGAPORE) Singapore Telecommunications' lead independent director Kaikhushru Shiavax Nargolwala held 37,000 shares in rival telco StarHub as at March 31, 2009, although he has since sold the shares.

'We understand that he sold those shares in May 2009,' said a spokesman for SingTel in response to a query from BT.

This echoes another scenario, when it was reported in 2003 that then SingTel chairman Ang Kong Hua purchased 235,000 shares worth about $310,000 in rival MobileOne (M1), which raised questions - and eyebrows - among some investors, who questioned his commitment and the potential conflict of interest.

At the time, Mr Ang defended his purchase, which he said was merely 'a portfolio investment'.

In the case of Mr Ang, his holdings were disclosed in M1's annual report since he was listed as the 19th largest shareholder in M1 as at March 3, 2003, a source pointed out.

At that point, Mr Ang reportedly held more shares in M1 than in SingTel.

He later bought 500,000 SingTel shares on March 13, 2003 which raised his holdings to 501,540 shares as at June 9, 2003, and had also sold the M1 shares by June.

In comparison, Mr Nargolwala holds some 37,000 shares which is not as significant, the source added.

Mr Nargolwala was appointed lead independent director of the board in May this year. He has been an independent director on SingTel's board since September 2006.

Meanwhile, group chief executive officer Chua Sock Koong's pay was down 5.3 per cent year-on-year in FY08-09, SingTel's annual report shows, as profits took a hit.

Although Ms Chua earned a higher base salary of $1.35 million in the year ended March 31, 2009, the cash bonus came in at $1.95 million for a total of some $3.38 million (including other components such as benefits). She received $3.57 million in FY07-08, which included a bonus of $2.34 million.

For its full financial year ended March 31, 2009, SingTel's net income fell 12.9 per cent to $3.45 billion despite a 0.6 per cent increase in revenue to $14.9 billion.

SingTel is also proposing a reduction - from 10 per cent to 5 per cent - of the amount of shares it can issue under a general mandate at an upcoming AGM to be held on July 24.

Last year it reduced the number from 15 per cent to 10 per cent.

Singapore listing rules allow companies, subject to an annual vote, to issue up to 20 per cent new shares without the need to get additional shareholders' approval - which can be a contentious issue for minority shareholders.

The proposed reduction is to 'provide shareholders with enhanced protection against dilution', the company said in its annual report.

With the same objective in mind, it is also looking to introduce an annual limit of one per cent - down from 10 per cent - of the total number of issued shares on the number of new shares awarded under the SingTel performance share plan.