KUALA LUMPUR (Jan 18): G Reka Perunding Sdn Bhd has emerged as a substantial shareholder in Atta Global Group Bhd, after acquiring 37.5 million shares or a 24.27% stake in the steel processing and trading company on Tuesday (Jan 16).

In a filing with Bursa Malaysia, Atta said G Reka had purchased the shares at RM1 per share or a total of RM37.5 million.

The acquisition makes G Reka Atta’s second-largest shareholder after Tan Kim Hee, who emerged as a substantial shareholder last month and now holds a 28.37% stake.

Atta also saw 13.27 million shares, representing an 8.86% stake in the company, traded off-market today for a total of RM13.69 million.

Bloomberg data showed the shares were traded in two blocks. The first block of 10.27 million shares had crossed at RM1 per share at 3.42pm, while the second block of almost 3 million shares were traded at RM1.14 per share at 5.08pm.

Both transaction prices represent a premium of 7% and 22% respectively to its closing price of 93.5 sen in the open market today. Its market capitalisation stood at RM142.98 million.

Yesterday, Atta chairman Ooi Chieng Sim was revealed to have disposed of 1.88 million shares in the company via his private vehicle, Skylitech Resources Sdn Bhd.

Skylitech continues to hold a 10.05% stake in Atta, making it the group’s third largest shareholder.

Atta reported a 51% decline in its net profit for the second financial quarter ended Sept 30, 2017 (2QFY18) to RM1.55 million, from RM2.34 million a year ago, on absence of a RM3.5 million disposal of fixed assets which had been recorded in the previous year’s corresponding quarter.

Despite this, quarterly revenue rose 46.7% to RM39.08 million from RM21.63 million in 2QFY17, due to an increase in contribution from its metal processing division on the back of higher market demand and selling price.

The group’s cable support system had also contributed to an increase in revenue for 2QFY18, from ongoing local projects.