FROM Feb 25 to March 3, some 470.8 million shares valued at RM877.9 million changed hands off market in blocks of at least 500,000 units.

Notable transactions included the exchange of 8.95 million shares or a 5.52% stake in CI Holdings Bhd on Feb 26.

At the time of writing, CI (fundamental: 1.85; valuation: 0.30) had yet to make an announcement to Bursa Malaysia regarding the off-market transaction. The transaction coincides with the surge in the edible oil packaging company’s share price and trading volume from Feb 26 to last Wednesday.

During the period, the group’s share price increased 73.7% to RM1.98. The stock’s trading volume rose to almost three million shares on March 3, compared with its average of less than 500,000 shares a day. The stock reached its limit up on March 3.

On the same day, Bursa issued an unusual market activity query to CI. The group responded by saying that it is in the midst of negotiating with several parties regarding a possible corporate exercise.

The largest shareholder of CI is Datuk Johari Abdul Ghani, the member of parliament for Titiwangsa, through JAG Capital Holdings Sdn Bhd with 32.72% equity interest, followed by Datin Mariam Prudence Yusof with 21.2% through Continental Theme Sdn Bhd and other investment holding companies.
 
At EA Holdings Bhd, largest shareholder Mohammad Sobri Saad disposed of 20 million shares or a 2.35% stake at 12.5 sen apiece through a married deal on Feb 25. His shareholding dropped to 17.15% following the disposal.

The software solutions and radio-frequency identification provider reported a lower net profit of RM4.9 million in the financial year ended Dec 31, 2014 (FY2014), compared with RM9.3 million in the previous year.

EA (fundamental: 1.65; valuation: 0.90) is in the midst of finalising its RM18 million acquisition of Murasaki Technology Sdn Bhd, an e-business software application and integration services provider.

The acquisition will diversify EA’s revenue into the private sector, as Murasaki Technology’s clients include hypermarkets as well as telecommunication and retail companies. The bulk of EA’s revenue currently comes from contracts with government-linked companies.

Pang Ling emerged as a substantial shareholder in Niche Capital Emas Holdings Bhd after acquiring 12.1 million shares or a 5.19% stake in the gold trading and retail distributing company on Feb 26. Following the acquisition, Pang’s equity interest expanded to 8.84%, becoming the second largest shareholder after RHB Bank Bhd.

Niche Capital (fundamental: 0.75; valuation: 0.30) is a Practice Note 1 company. On Dec 24, it issued 115.13 million shares to four creditor banks including RHB, CIMB Bank Bhd, AmBank (M) Bhd and United Overseas Bank (M) Bhd as part of a debt settlement agreement.

On Feb 26 and March 3, iDimension Consolidated Bhd saw 15 million shares or 3.37% of its share base transacted off market at 10 sen apiece. The e-manufacturing software solutions provider has not filed any changes in its shareholding as at press time.

iDimension’s (fundamental: 0.95; valuation: 0.60) net loss for FY2014 widened to RM1.76 million, from RM419,000 the year before. The company is venturing into the provision and distribution of broadband contents and online games to diversify its business.

At Imaspro Corp Bhd, non-executive chairman Mohd Shafek Isa sold 1.93 million shares or a 2.41% stake held through Sunbina Dunia Sdn Bhd to Chan Weng Fai at RM1.30 per share on Feb 25. Sunbina Dunia further disposed of 2.79 million shares or 3.5% equity interest in Imaspro (fundamental: 1.45; valuation: 1.80) on Feb 27 and March 3 at the same price, according to a filing with Bursa.

(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.)

This article first appeared in The Edge Malaysia Weekly, on March 9-15, 2015.

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