Established - 1887
The founding history of The Straits Trading Company Limited can be traced to the 19th century with the formation of a partnership for tin smelting between James Sword, a Scottish businessman, and Herman Muhlinghaus, a German entrepreneur. The partnership evolved successfully to become one of the largest tin smelters in the world. To raise capital for expanding the business, The Straits Trading Company Limited was incorporated in Singapore on 8 November 1887 with an initial capital of S$150,000.
Backed by 120 years of prudent and astute business management, the corporation is an investment holding company with shareholders’ funds of S$1,831,487,000 as at 31 December 2007. Its business interests span the Asia Pacific region. Apart from tin mining and smelting, the Group’s core activities include investments in other metals and mineral resources, hotel investment and management, property operations, as well as financial investments.
The Straits Trading Company Limited is committed towards achieving higher returns for its shareholders. With a clear focus on shareholder value, the Group will continue to review its business strategy and redeploy its resources to sustainable income-generating activities.
RECENT CORPORATE DEVELOPMENTS
The Extraordinary General Meeting of the Company will be held at Straits Ballroom, Level 2, Rendezvous Hotel, Singapore 189559 on 13 June 2008 at 10.00 a.m. to seek shareholders’ approval for any financial assistance which may be given by the Company, within the meaning of section 76 of the Companies Act (Cap. 50), in connection with the acquisition of shares by The Cairns Pte Ltd or other shareholders by way of payment of the proposed special dividend (as hereinafter defined), and for the payment by the Company of the proposed special dividend of $1.50 per share to shareholders as at a books closure date to be determined by the Directors.
On 15 May 2008, the Company released the unaudited results of the Group and the Company for the period ended 31 March 2008. The Company also announced that the Board has proposed to increase the amount of the special dividend from $0.60 per share to $1.50 per share, subject to shareholders’ approval at an extraordinary general meeting to be convened.
On 30 April 2008, Mrs Elizabeth Sam was appointed to the Board as an independent and non-executive Director of the Company, as well as Ms Chew Gek Hiang and Mr. David Goh Kay Yong, who were both appointed as non-independent and non-executive Directors of the Company on the same day.
Ms Chew Gek Khim was appointed as the non-executive and non-independent Chairman of the Company effective following the conclusion of the Annual General Meeting on 24 April 2008.
In April 2008, Malaysia Smelting Corporation Berhad (MSC) announced its entry into a Framework Agreement with Philco Resources Limited, LG International Corp and Korea Resources Corporation, in relation to MSC's proposed investment for a 30% interest in the Rapu Rapu copper, gold, zinc and silver project in Philippines at an estimated cost of approximately USD18.9 million.
The Annual General Meeting of the Company will be held at Straits Ballroom, Level 2, Rendezvous Hotel , Singapore , 9 Bras Basah Road , Singapore 189559, on Thursday, 24 April 2008 at 3.00 p.m.
On 6 January 2008, The Cairns Private Limited (TCPL) announced its intention to launch a voluntary conditional cash offer for the Company (STC). On 24 January 2008, Knowledge Two Investment Pte Ltd (KTIPL) announced its intention to launch a mandatory conditional cash offer for STC. On 2 March 2008, KTIPL withdrew its mandatory conditional cash offer. On 4 March 2008, TCPL announced that its offer had been converted to a mandatory unconditional cash offer. The TCPL cash offer closed on 3 April 2008, with TCPL and parties acting in concert with it, owning approximately 88.98% of STC's issued share capital. STC remains listed on the Singapore Exchange Securities Trading Limited.
In March 2008, the Company announced that pursuant to a request by The Cairns Private Limited to enhance shareholders’ value by distributing additional dividends, the Board has proposed that the Company declare a special cash dividend (Special Dividend) of $0.60 per ordinary share in the capital of the Company, to be paid to shareholders of the Company as at a books closure date to be determined. The Special Dividend is conditional upon shareholders’ approval to be obtained at an extraordinary general meeting of the Company to be convened, for any financial assistance which may be given by the Company in connection with the acquisition of ordinary shares in the capital of the Company, and for the payment of the Special Dividend.
Ms Chew Gek Khim was appointed to the Board as a non-independent and non-executive Director of the Company on 20 March 2008.
In February 2008, Rendezvous Hotels International Private Limited (the Group’s hotel management arm), announced the acquisition of the 101-room Emerald Hotel in Perth , with settlement expected in April 2008. This hotel will be refurbished and managed under The Marque brand and will be renamed The Marque Hotel Perth.
In February 2008, Malaysia Smelting Corporation Berhad (MSC) announced the subscription of 70 million shares in Beaconsfield Gold NL (BCD), a company listed on the Australian Stock Exchange, representing approximately 19% of BCD’s enlarged issued and paid-up share capital, for approximately A$19.6 million. The subscription was completed on 3 March 2008.
In January 2008, Malaysia Smelting Corporation Berhad announced that allegations were made against two appointed subcontractors of PT Koba Tin, MSC’s 75% owned subsidiary in Indonesia, in respect of their mining in a forest area within PT Koba Tin’s Contract of Work area, where mining is prohibited. PT Koba Tin is seeking clarification and assistance with relevant authorities on the actions taken by the local police for PT Koba Tin to stop receiving tin ore from its appointed subcontractors and production of tin ingots from its smelting operations, with the aim of restoring operations back to normality as soon as possible.
In January 2008, Rendezvous Hotels International Private Limited (the Group’s hotel management arm) announced the signing of an agreement by its subsidiary to manage new 4-star 200-room hotel to be built in Shanghai , under The Marque brand, and to be known as the Marque Hotel Yu Garden, Shanghai .
In January 2008, the Company announced that it is in advanced discussions with Oversea-Chinese Banking Corporation Limited on the redevelopment and management of Specialists’ Centre and Hotel Phoenix Site.
In December 2007, Malaysia Smelting Corporation Berhad (MSC), announced the entry by PT Tenaga Anugerah (a company in which MSC has an indirect interest of 60%) into a Mining Corporation Agreement with PT Sarana Marindo, in relation to an offshore tin mining venture in Bangka Island, Indonesia.
In December 2007, the Group’s listed subsidiary, Malaysia Smelting Corporation Berhad, entered into a subscription agreement for 11.4 million shares with 6.8 million detachable warrants in Asian Mineral Resources Limited (AML), a company listed on the TSX Venture Exchange, representing approximately 12.8% of AML’s enlarged issued and paid-up share capital, for a total cash consideration of approximately C$20 million.
METALS AND MINERAL RESOURCES
The Group’s metals and mineral resources operations started in 1887 when the Company was formed and are currently carried out by its 73%-owned subsidiary, Malaysia Smelting Corporation Berhad (MSC), a public listed company on Bursa Malaysia .
MSC is currently:
• One of the largest custom tin smelters;
• One of the top producers of high purity 4 nines tin; and
• The first tin smelter to achieve ISO 9002 accreditation.
With successful acquisitions of upstream and downstream business units in the last few years, MSC has become one of the world’s leading integrated producers of tin metal and tin-based products. It operates one of the most cost-efficient smelting plants in the world, converting primary, secondary and often complex tin bearing materials into high purity tin metal for industrial applications.
The existing custom smelting facility in Butterworth , Malaysia is one of the world’s largest and since its inception in 1903, has been supplying the world with the Straits refined tin brand which is registered at London Metal Exchange and Kuala Lumpur Tin Market.
MSC enjoys an unsurpassed global reputation that has been built on its years of experience in tin smelting and as a supplier of high grade refined tin metal. The continuous investment by MSC in its processes, R&D, human resource development and international networking, will ensure its global position as a leading tin smelter and producer into the 21st century.
MSC envisions to be a premier diversified mineral resource organisation in the Asia Pacific region, focusing in tin, coal, gold and advanced minerals. In December 2007, MSC further added nickel into its mining portfolio by investing a 12.8% (with warrants to increase its stake to around 19%) in Asian Mineral Resources Limited, a Toronto listed company with nickel mines in Vietnam .
For more information, please visit MSC’s website at:
Corporate Headquarters 18 Cross Street #15-01
Tel: 65-65139288 Fax: 65-65347202