$Raffles Edu (NR7.SG)$ Raffles Education shares sink as tyco...

$Raffles Edu(NR7.SG)$
Raffles Education shares sink as tycoon Oei Hong Leong's letter to the board circulates

1. The stock of mainboard-listed Raffles Education (REC) was hammered to new lows on Monday (Oct 18) as the market got hold of a letter by tycoon Oei Hong Leong to the company's board.

2. The stock dived 26 per cent, or 2.1 cents, to close at 6.1 cents in the wake of a letter from Mr Oei asking why REC's chief executive and founder Chew Hua Seng had caused the company to hire all "adult members of his family at high salaries".

3. In fact, the stock has been under pressure for several months following the company's disclosure that it was issued a writ by Affin Bank amounting to some RM$410 million (S$132.9 million) on an unpaid loan.