This article first appeared in Capital, The Edge Malaysia Weekly on November 13, 2017 - November 19, 2017
Notable filings
BETWEEN Oct 30 and Nov 3, notable filings with Bursa Malaysia included those by Hubline Bhd. Its executive vice-chairman Datuk Richard Wee Liang Huat raised his holding to 13.7% after acquiring 27.8 million shares through BNDM Incorporated Holdings Sdn Bhd. Wee, who was chairman before he was redesignated on Sept 18, bought four million shares on Nov 2 and 23.8 million shares on Nov 3.
The shipping company was queried for unusual market activity on Oct 19 and the next day, it announced that it was negotiating a preliminary agreement with an oil and gas company for the provision of logistics services. There were no updates on this at press time.
Key Asic Bhd saw Atlantic Quantum Sdn Bhd paring down its stake in the company by 16.97 million shares between Oct 31 and Nov 2, reducing its shareholding to 16.75%. Khazanah Nasional Bhd is deemed to have interest in Atlantic Quantum.
Key Asic, which is involved in the manufacturing of chips and system products for Internet of Things, has proposed a private placement to raise up to RM66.82 million to fund its working capital.
Meanwhile, Rohas Tecnic Bhd saw PT Safe Tower System Sdn Bhd become a substantial shareholder after it acquired 72.8 million shares or a 15.4% stake. Filings with Bursa reveal that the stake was acquired from Datuk Gan Kim Huat, who is no longer a substantial shareholder.
The transaction came after the company agreed to purchase a 75% stake in HG Power Transmission Sdn Bhd for RM91.66 million in exchange for 72.8 million new shares in Rohas Tecnic. Gan’s total shareholding in the company was diluted to 4.95% after the new issuance of shares.
Over at Omesti Bhd, CEO Datuk Mah Siew Kwok sold a total of 6.06 million shares through direct trades on Oct 31 at 42 sen and 47 sen apiece, according to filings with Bursa.
For the first quarter ended June 30, 2017, Omesti’s net loss shrank to RM460,000 from RM3.57 million a year ago, despite revenue contracting 6.1% to RM89.19 million.
Notable movements
Diversified Gateway Solutions Bhd’s share price surged 90% in just six market days, rising from five sen on Oct 30 to 9.5 sen on Nov 6. From there, it retraced about 21% to close at 7.5 sen on Nov 8 — which is still 200% more than at the start of the year.
Omesti Holdings Bhd, a subsidiary of Omesti Bhd, disposed of 290 million shares in the company on Nov 2, paring down its holding to 22.06%. Most of the shares were sold to Insas Bhd, whose unit Insas Technology Bhd bought 270 million Diversified Gateway Solutions shares at RM12.83 million or 4.75 sen apiece.
At its closing price of 49.5 sen last Wednesday, Rev Asia Bhd’s share price was up 108.6% year to date. However, the stock was down 16.1% from the Oct 30 close of 59 sen as its largest shareholder, Catcha Group Pte Ltd, cashed in on some of the gains. Filings show that Catcha Group sold a total of 11.36 million Rev Asia shares or a 8.44% stake between Oct 31 and Nov 2, reducing its holding to 43.75%.
Catcha — which is working with Malaysia Digital Economy Corp Sdn Bhd to develop the Kuala Lumpur Internet City (part of the Digital Free Trade Zone where China’s Alibaba Group is setting up its regional e-commerce logistics hub) — sold 6.3 million Rev Asia shares on Oct 31, 4.5 million shares on Nov 1 and 560,000 shares on Nov 2.
Rev Asia, which paid a 44 sen special cash dividend to shareholders in August after selling its 70%-owned core advertising and social media assets for RM73.5 million to Media Prima Bhd, has about eight months to submit a proposal on the acquisition of a new core business to Bursa.
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