Credit Bureau Asia Limited Faces Shareholder Queries Over Licensing, Business Operations, and Governance

Credit Bureau Asia Limited (TCU) is set to address shareholder concerns over its licensing, business operations, and governance at its upcoming annual general meeting (AGM) on April 25, 2025. The company’s subsidiary, Credit Bureau (Singapore) Pte Ltd (CBS), has been granted a license by the Monetary Authority of Singapore (MAS) to carry on a consumer credit reporting business, effective April 1, 2025.

Key Points:

CBS has been licensed by MAS for consumer credit reporting, effective April 1, 2025.
The company operates two main business segments: financial institutions (FI) data business and non-FI data business.
Shareholders are seeking clarity on the new license, its impact on business operations, and whether it enables CBS to broaden its services.
The company is also expected to provide updates on its innovation pipeline, macroeconomic volatility, Vietnam market entry, and cash and capital allocation.

Licensing and Business Operations:

Shareholders are questioning the management on the new license granted to CBS, whether it is new and distinct from existing licenses held by the group, and if it enables CBS to broaden its services or offerings. The company will need to clarify if this additional licensing is required under the Credit Bureau Act 2016 to continue its existing business operations.

Financial Performance and Strategy:

Shareholders are seeking greater clarity on the company’s operational and financial matters, including:
Innovation pipeline: How new products and services are identified, developed, and brought to market.
Macroeconomic volatility: The potential impact of a global economic slowdown on its FI and non-FI businesses.
Vietnam market entry: Progress made towards establishing operations in Vietnam, following a memorandum of understanding (MoU) with FiinGroup JSC four years ago.

Governance and Board Attendance:

Shareholders are also concerned about the attendance of directors at board and board committee meetings. The executive chairman, Mr. Kevin Koo, and director, Mr. Low Seow Juan, have been absent from certain meetings, raising questions about their participation and discharge of fiduciary duties.

Cash and Capital Allocation:

The company held $67.0 million in cash and bank balances as of December 31, 2024, with approximately $30 million invested in short-term deposits. Shareholders are asking if the board has considered increasing the dividend payout or returning capital to shareholders through a special dividend, share buyback, or equal access offer.

Conclusion:

The upcoming AGM will be crucial for Credit Bureau Asia Limited to address shareholder concerns and provide clarity on its licensing, business operations, and governance. The company’s responses will be closely watched by investors and may impact its share price.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors should do their own research and consult with a financial advisor before making any investment decisions. The information contained in this article is based on publicly available data and may not be up-to-date or accurate.

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