Union Steel Holdings Limited: Key Highlights from 2025 Annual General Meeting

Date: 28 October 2025
Location: 33 Pioneer Road North, Singapore 628474
Time: 10:00 a.m.

Overview

Union Steel Holdings Limited held its Annual General Meeting (AGM) with all resolutions passed unanimously by shareholders. The meeting covered financial performance, dividend declaration, directors’ remuneration, board composition, and share issuance mandates—critical topics for investors monitoring the company’s governance and growth trajectory.

Key Highlights and Investor-Relevant Developments

1. Financial Results and Dividend Declaration

• Audited Financial Statements Adopted: Shareholders received and adopted the audited financial statements and directors’ statement for the financial year ended 30 June 2025. There were no questions raised on the accounts, indicating shareholder satisfaction or confidence in the reported numbers.
• Dividend Announcement: A final dividend of 0.85 Singapore cents per share (tax exempt, one-tier) was approved for FY2025. This payout provides a direct return to shareholders and reflects the company’s positive cash position and profit performance.

2. Significant Shareholding Update: Eneco Energy Limited

• During the AGM, management clarified the company’s shareholding in Eneco Energy Limited (SGX-listed). The company had exercised all 680 million warrants in Eneco before their expiry on 31 August 2025, resulting in Union Steel holding an approximately 25% equity interest in Eneco Energy and remaining its largest shareholder.
• Price Sensitivity: This substantial stake could have a material impact on Union Steel’s future earnings and balance sheet, depending on Eneco Energy’s performance and share price. Investors should monitor developments in Eneco Energy as they may affect Union Steel’s valuation.

3. Directors’ Fees and Board Composition

• Directors’ Fees: Approval was given for directors’ fees of S\$174,600 for the financial year ending 30 June 2026, payable quarterly in arrears.
• Board Re-elections: All directors up for re-election retained their positions, including Mr. Ang Yew Chye (Executive Director), Mr. Goi Kok Ming (Non-Executive Director), Mr. Ong Beng Chye (Independent, Chairman of Audit Committee), and Mr. Tan Peng Chin (Independent, Chairman of Nominating Committee). The continuity in board leadership signals stability and ongoing confidence in current management.
• The independence of Mr. Ong and Mr. Tan was reaffirmed, in compliance with SGX requirements—a positive governance signal for institutional investors.

4. Auditor Re-appointment

• CLA Global TS Public Accounting Corporation was re-appointed as external auditors, ensuring continuity in financial oversight.

5. Authority to Issue Shares—Share Issue Mandate

• Shareholders granted the board authority to issue new shares or instruments up to 50% of the company’s issued share capital (with a 20% limit for non-pro-rata issues). This annual mandate provides the company with flexibility for future fundraising, acquisitions, or share-based incentives.
• Price Sensitivity: While no immediate issuance was announced, this mandate could lead to potential equity dilution if exercised. Investors should monitor any subsequent share placements or rights issues, as these could impact share value.

6. Poll Results: Unanimous Support

• All resolutions were passed with 100% approval (except the share issue mandate, which had 99.96% approval). This reflects strong shareholder confidence in management and company direction.

Potential Price Moving Information

• The 25% stake in Eneco Energy Limited is a material holding that could impact Union Steel’s valuation, especially if Eneco’s business performance or stock price changes significantly.
• The dividend declaration signals robust cash flow and commitment to shareholder returns.
• The share issue mandate presents both future growth opportunities and potential dilution risks.

Conclusion

Union Steel Holdings Limited’s 2025 AGM confirmed the company’s stable financial position, ongoing board stability, and strategic flexibility for future capital raising. The company’s substantial holding in Eneco Energy Limited, commitment to dividends, and readiness for future share issuance are key issues for investors to watch closely in the coming year.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisers before making any investment decisions.

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