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SINGAPORE - Global Investments Ltd (GIL) minorities scored a rare coup in Singapore corporate history yesterday - when they voted in a new fund manager, ST Asset Management (STAM), in opposition to their company's substantial shareholders.

It concludes a contest which started when GIL proposed replacing its existing fund manager with STAM. But Babcock & Brown and related parties holding a 22 per cent stake in GIL opposed it, and AGSO Property Pty Ltd, trustee for Babcock & Brown Prime Broking Trust that holds a 13.85 per cent stake in GIL, proposed instead that Pengana Holdings Pty Ltd be installed as the new fund manager.

In the event, minority shareholders, representing 61.39 per cent of the shares present at the meeting, voted to install Temasek-owned STAM to replace Babcock & Brown Global Investments Management Pty Limited as GIL's new fund manager.

Babcock & Brown group entities, representing 38.61 per cent of the shares at the meeting, voted against the proposal.

Jubilant minority shareholders - some of whom were excited at the prospect of having Temasek as a potential investor - chased the stock when it resumed trading at 4pm and it closed up almost 13 per cent or three cents to 26.5 cents.

Some 300 shareholders had turned up for the meeting yesterday morning following intensive canvassing by STAM, a wholly owned Temasek unit.

'It's a situation not seen often where minority shareholders have turned up in force to vote against the substantial shareholders who opposed it,' said Dilhan Pillay Sandrasegera, who stepped down from the board at the end of yesterday's meeting.

From historical voting patterns, very few shareholders turn up and vote at meetings, he said. And this was a point that two former GIL directors highlighted when they said there was a high risk of failure given that the substantial shareholders, holding in excess of 20 per cent of the shares in issue, were against STAM as the new fund manager.

'We (independent directors) decided to withstand the pressure from them because we see the support of the (minority) shareholders,' said Mr Pillay.

With STAM on board, the company will consider moving its domicile to Singapore from Bermuda, given that the majority of shareholders are retail investors here, said Mr Pillay.

Earlier, a Mr Tan lamented the predicament of shareholders because Bermuda is 'notorious for its opaqueness and no protection (for shareholders)' and asked directors to 'forsake your Bermuda shorts and transfer to sarong kebaya'.

When GIL, the former Babcock & Brown Structured Finance Fund, made its IPO debut in late 2006, about 85 per cent were institutional shareholders and it was part of the reason for choosing to be domiciled in Bermuda .

Six month later, it had swung towards mostly Singapore retail shareholders as the institutional investors bailed out with the onset of the financial crisis.

'Some did it because they were facing redemptions from their investors, others decided to cut loss,' said Mr Pillay.

GIL strategic adviser Standard Chartered Bank was all praise for STAM and its efforts in rallying minority shareholders to the meeting.

'This process has involved a lot of hard work over recent months from both ST Asset Management and the Global Investments Limited Board of Directors. The final outcome and successful conclusion is a result of the extraordinary turnout of Singaporean retail investors,' said Andrew Suckling, managing director, corporate finance & advisory, Standard Chartered Bank.

Goh Mui Hong, STAM president and chief executive, relied on old-fashioned legwork to reach as many of the 6,000 odd shareholders, even going door to door.

'We started on Nov 8 after the circular dated Nov 8 was sent out, according to legal advice. We probably called around 1,000 and visited 400. All were done by STAM staff, not outsourced,' said Ms Goh.

Promising to do her best for GIL shareholders, Ms Goh said it was a 'moral obligation'.

'During this whole process we feel an affinity to the shareholders, the man in the street,' said Ms Goh.

'Some of these people buying are just from three-room flats,' she said.

'After getting their 'for' vote, I think I have a moral obligation back to them. No matter how small or how big they are, I definitely want to perform well.'