This article first appeared in The Edge Financial Daily on October 20, 2017

KUALA LUMPUR: Shipping company Hubline Bhd revealed yesterday it is in the midst of negotiating a preliminary agreement with “a large oil and gas (O&G)/chemical company” for the provision of logistics services.

However, the terms and details of the memorandum of understanding (MoU) have not been finalised.

“As soon as the MoU is signed, the company will make immediate full disclosure in accordance with listing requirements,” it told Bursa Malaysia in a filing, in response to the regulator’s unusual market activity (UMA) query sent earlier the same day.

This, it said, may be the reason behind the unusual trading activity seen at its counter. Another reason which it said could account for the UMA was the slew of boardroom changes in the company announced on Sept 18.

On Sept 18, Ibrahim Baki was redesignated from non-executive director to Hubline chairman, taking over from Datuk Richard Wee Liang Huat @ Richard Wee Liang Chiat, who was subsequently redesignated as executive vice chairman.

“Subsequent to them taking up their new roles, both the newly appointed chairman and vice chairman have increased their shareholdings in the company and announcements have been made accordingly,” said Hubline.

Save for the above, it said it was not aware of any rumour or report concerning the group’s operations, or any corporate development not previously announced, that may account for the unusual movement of its share price and volume.

Hubline’s share price, which had been rangebound between six sen and seven sen since mid-May, had started rising from Sept 15 to reach 16.5 sen yesterday, when the counter was the second most actively traded stock after 138.77 million shares exchanged hands.

At the current share price, the company has a market capitalisation of RM268.65 million.