Off-Market Trades

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A total of 460 million shares, valued at RM366 million, were traded off market in blocks of at least 450,000, from June 11 to 17. Notable transactions included those at Xinghe Holdings Bhd, which saw about 39.5 million shares or a 26.6% stake cross off market, during the week in review.

The shares were transacted at between 21 sen and 25.5 sen apiece, in a series of direct and block trades, amounting to RM9.1 million.

In a filing with Bursa Malaysia on June 12, Xinghe announced that its director, Ng Min Lin, had purchased 10 million shares worth RM2.1 million. The transaction was done in a direct deal at 21 sen apiece. Ng now holds a 7.1% stake in the company.

There were three other direct transactions worth RM6.7 million: 7.5 million shares at 21 sen each; 10 million shares at 24 sen each; and 10.5 million shares at 25.5 sen each. It is still unclear as to who the transacting parties were. Also on June 12, SYF Resources Bhd saw 27.5 million shares or a 10.02% stake worth RM28.9 million, traded off market in several direct deals.

According to filings with Bursa, SYF Resources executive chairman and CEO, Datuk Seri Ng Ah Chai, disposed of 7.5 million shares at RM1.05 apiece, in a direct deal. He is now left with a 60.73% stake in the company.

SYF Resources executive director, Cheong Yee Kiong, also sold two million shares at RM1.05 apiece. Cheong now has a minority stake of 0.49%.

In March, the company received a notice of unconditional mandatory takeover on behalf of Ng, to acquire all remaining shares of 25 sen, at a cash offer of 65 sen apiece.

The rubberwood furniture maker has seen its shares double in price in two months, reaching a high of RM1.26 on June 17 (Tuesday), before closing at RM1.19.

Over at Minetech Resources Bhd, which offers quarry services, a total of 13.5 million shares or a 4.06% stake in the company, worth RM2 million, was traded off market.

On June 17, some 13 million shares worth RM1.95 million were traded in a direct deal, at 15 sen apiece. On the same day, another block of 459,100 shares were also traded at 15 sen each.

In a filing with Bursa on June 18, Minetech announced that Low Choon Lan, who resigned as non-independent and non-executive director in February, had ceased to be a substantial shareholder in the company, after disposing of 28.5 million shares.

Some 13 million of her shares were sold in an off-market deal, while the rest were disposed of on the open market.

Minetech’s shares have been declining, since reaching an all-time high of 31.5 sen in February. They are now trading at around 15 sen.

Hubline Bhd too, saw a series of off-market trades. Some 130.5 million shares or a 4.03% stake in the Sarawak-based shipping firm, was traded through direct, cross and block deals worth RM6.7 million.

Between June 11 and 16, the company saw 51.6 million shares worth RM2.6 million, transacted in three direct deals at five sen apiece.

Hubline announced to Bursa that executive chairman and CEO Dennis Ling Li Kuang’s spouse, Christine Lau Swee Eng, had sold 51.6 million shares in an off-market deal. Ling’s indirect interest has now decreased to 0.36%, from 1.59%.

Some 5.5 million shares or a 2.56% stake in Penang-based developer, Seal Inc Bhd, was traded off market in three direct deals, at RM4.5 million. On June 11, one million shares worth RM745,000 were transacted, while another 700,000 shares were traded for RM521,500. The deals were done at 74.5 sen per share.

On June 16, Seal Inc saw 3.8 million shares worth RM3.3 million change hands, at 86 sen apiece.

This story first appeared in The Edge weekly edition of June 23-29, 2014.