A plan by Oxford Properties & Finance to issue new shares to pay for a project in Guam would do little to boost trade in the company's illiquid shares, minority investors in the firm said yesterday.
The company yesterday said it planned to co-develop several of its properties in Guam with a third party and would issue new shares for its partner's contribution towards the project.
The move comes after a government-appointed investigator earlier found that too many Oxford shares were under the control of just one person - in violation of government rules.
Yesterday's announcement is aimed at helping restore the company's public float to 25 per cent of outstanding shares - the minimum required, which allegedly had been breached.
According to the investigator's report, company founder James Lee had apparently been controlling 90 per cent of Oxford's shares through 11 firms, resulting in persistently thin trading.
Jimmy Yeung, who is leading the minority shareholder movement, said Oxford's development plans in Guam would not make any difference.