Raffles Education Corp
Raffles Education Corp website

Billionaire shareholder Oei Hong Leong has called an extraordinary general meeting (EGM) in an attempt to drive out Raffles Education Chairman Chew Hua Seng.

Raffles Education Corp, an operator of colleges and universities, on Thursday requested for an EGM on behalf of Oei Hong Leong and Oei Hong Leong Art Museum (OHLAM).

The EGM proposes to remove Chew, who is also the firm's founder and chief executive, and be replaced by an independent director as non-executive chairman of the company.

If none of the independent directors wish to take the position, Oei is proposing that the board search for a suitable replacement to assume the role of non-executive chairman.

Oei Hong Leong, who owns about 13 percent in the company, is the 25th richest person in Singapore, according to the latest ranking from Forbes.

Last month, Raffles Education announced that it would place out 95 million new shares to raise net proceeds of $28.2 million to be used to repay loans and borrowings, and for working capital purposes.

Oei, who has been picking up shares in the firm from the market over the past year, stake in Raffles Education was reduced from 14 percent due to the share placement.

Raffles Education Corp shares jumped 14 percent to S$0.36 on the Singapore Exchange. The stock has surged 92 percent so far this year.