SINGAPORE (March 8): The independent directors of Silverlake Axis are exploring a proposal mooted by executive chairman Goh Peng Ooi for the company to acquire his shareholding interests in various Silverlake Axis private entities.

This follows a preliminary evaluation by the directors who found the proposal to be in line with the company’s longer-term strategy of enhancing and expanding the company’s operations beyond its core Silverlake Axis Integrated Banking Solution (SIBS) business.

Accordingly, Silverlake Axis has responded to Goh by submitting a non-binding letter indicating its interest to further explore the opportunity.

In addition, the company intends to engage professional advisers to assist in its evaluation and will keep the shareholders informed of any material developments in this regard, said Silverlake managing director Kwong Yong Sin in an SGX filing.

Silverlake Axis is the Malaysia-based provider of software and systems for financial institutions in Southeast Asia.

In 2015, an anonymous short-seller report accused Silverlake Axis of doing related-party transactions (RPT) with private companies that were linked to Goh. These transactions were said to account for around a quarter of Silverlake Axis’ revenue and expenses. The report also alleged that some of the transactions were conjured up to inflate Silverlake Axis’ profit.

Over the years, Silverlake Axis had acquired and merged with a number of private companies that were held by Goh. But the report accused the private companies of inflating their revenues and profits prior to the corporate actions so that Silverlake Axis ended up overpaying for them.

Goh was also accused of impropriety through the construction of a “complex and deceiving corporate structure” with Silverlake Axis.

However, an independent probe ordered by the board later found no evidence of misconduct.

Silverlake closed half a cent lower at 56 Singaporean cents on Wednesday, before the latest announcement.