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NOTABLE filings

Notable shareholding changes from June 8 to 12 included the acquisition of 21.7 million BCB Bhd shares by Evergreen Ratio Sdn Bhd on June 5.

Evergreen subsequently bought more shares and triggered a mandatory general offer of the Johor-based property firm.

According to a June 8 filing, Evergreen acquired 21.7 million shares or 10% of BCB (fundamental: 0.80; valuation: 3.0) at 90 sen apiece or RM19.53 million in total, lifting its shareholding to 32.81%. On June 15, Evergreen bought another 22.55 million shares or a 11.26% stake via a direct business transaction at RM1 apiece, raising its interest to 44.08% or 88.25 million shares, thus triggering the MGO.

Evergreen is led by BCB group managing director Datuk Tan Seng Leong, who intends to maintain the company’s listing status. BCB’s stock closed at RM1.03 last Wednesday.

Meanwhile, Mudajaya Group Bhd (fundamental: 0.55; valuation: 1.20) saw its substantial shareholder Dataran Sentral (M) Sdn Bhd divest 30 million shares or a 5.57% stake on June 4, cutting its holdings to 19.21%. Stock market data show 30 million shares changed hands in a direct deal at RM1.40 apiece on June 4, the price it closed at that day. Closing at RM1.23 last Wednesday, the stock had fallen over 15% year to date.

Anto Joseph, 63, who on April 1 this year retired as group managing director and assumed the role of special adviser to the board, is deemed interested in Dataran Sentral, together with another former Mudajaya managing director Ng Ying Loong and non-executive director Wee Teck Nam.

The buyer of the 30 million shares is likely US-based Odyssey Reinsurance Company, which emerged as a substantial shareholder on June 4 with a 5.57% direct stake. Odyssey is controlled by Canada-based Fairfax Financial Holdings Ltd, whose indirect interest stood at 14.24% or 76.64 million shares after the deal.

Between June 4 and 10, Reach Energy Bhd (fundamental: N/A; valuation: NA) saw several open market purchases by Datuk Azmil Khalili Khalid, who is a substantial shareholder in the special purpose acquisition company.

According to a June 10 filing, the purchases amounted to 6.67 million shares, lifting his holdings to 99.4 million shares or a 7.78% direct and indirect stake as at June 10. Reach Energy was trading at around 60 sen during the period the trades were made. Owing to the recent slump in oil prices, Reach Energy, which was listed in July 2014, has yet to secure a qualifying acquisition in the brownfield space to become an independent oil and gas company.

Over at Protasco Bhd (fundamental : 0.75, valuation : 1.20) , substantial shareholder Datuk Tey Por Yee disposed of 2.57 million shares on June 2 and 3, leaving him with a 13.65% stake or 45.63 million shares. Tey, who was ousted from Protasco’s board last November, recently told The Edge his entry into the firm was not the pleasant partnership he had expected.

Notable movements

At its closing price of RM1.26 on June 17, shares of Evergreen Fibreboard Bhd (fundamental: 0.85, valuation: 0.90) were up 98% year to date. According to a June 10 filing, Lembaga Tabung Haji is taking profit. It disposed of some 6.73 million shares between June 1 and 8 for RM1.189 to RM1.304 apiece. This leaves the pilgrim fund with 27.37 million shares or a 5.34% stake. A beneficiary of the weakening ringgit, the wood-based products manufacturer sees more than 70% of sales come from overseas.

Similarly, shares of SMTrack Bhd (fundamental: 1.85, valuation: 0.30) rallied to an intra-day high of 17.5 sen on May 20 from just 6.5 sen on April 17. Filings dated June 10 show its chief financial officer Lai Kian Huat selling his entire stake of 10.89 million shares for 13 sen to 14 sen apiece on June 8, the same day he was appointed an executive director. The stock closed at 10.5 sen last Wednesday.

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Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.

This article first appeared in Capital, The Edge Malaysia Weekly, on June 22 - 28, 2015.

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