Datapulse Technology says its audit committee has agreed with the findings of an independent financial advisor that two hotel mgmt agreements flagged by SGX are “on normal commercial terms”. In response to a notice of compliance issued last month by SGX, Datapulse adds that the audit committee and independent financial advisor found the hotel-related deals are “not prejudicial to the interest of the company and its minority shareholders”. The group says the audit committee had looked at major terms in the hotel mgmt agreements, including the contractual period, base fees, incentive fees, sales, marketing, reservation and centralised service fees, operator restrictions; and the terms of termination. It adds that the audit committee had reviewed the agreements as if they were interested person transactions, and had engaged an independent financial advisor and an industry expert to help in its deliberations. It adds that the group is only a minority co-investor in the two hotel deals, and that the appointment of the hotel mgmt companies had been subject to a majority vote, in line with commercial practice.... Continue Reading