Off-Market Trades: ConnectCounty Holdings, Naim Indah Corp, DGB Asia and Instacom Group

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BETWEEN Oct 23 and 28, some 432.98 million shares worth over RM415.10 million were transacted in blocks of at least 450,000 shares via off-market trades.

ConnectCounty Holdings Bhd saw 15 million shares or a 7.95% stake traded via a direct deal on Oct 23 at 19.5 sen apiece. The shares were valued at RM2.92 million.

According to filings with Bursa Malaysia, two substantial shareholders have emerged in the electronic equipment manufacturer, with a 7.95% stake each.

Datuk Ng Aik Kee and Yap Shuh Jian acquired 15 million shares each through a cross-sell deal at 19.5 sen apiece. Ng is the executive director of Chin Foh Bhd, a hardware and aluminium trading and manufacturing company.

Both Ng and Yap emerged as substantial shareholders in ConnectCounty after Metro Hexagon Sdn Bhd ceased to be a substantial shareholder, following its disposal of 30 million shares at 19.5 sen each.

According to ConnectCounty’s annual report, Metro Hexagon was the company’s largest shareholder as at April 11, 2014, with a 17.76% interest.

Over at Naim Indah Corporation Bhd, some 30.62 million shares or a 3.97% stake in the company were traded through an off market transaction on Oct 23.

According to filings with Bursa, Naim Indah CEO Datuk Raymond Chan Boon Siew sold some 38.8 million shares to two other directors, Datuk Siaw Swee Hin and Datin Khoo Lay Wah, via married deals between Oct 21 and 24.

The shares were transacted at 12.5 sen per share for a total value of RM4.85 million. Some 28.84 million shares or 3.73% were sold to Siaw, while the remaining 10 million shares were sold to Khoo.

Meanwhile, on Oct 24, Quantum Discovery Sdn Bhd also acquired some 10 million shares in Naim Indah at 12.5 sen apiece through a married deal.

According to a filing, Quantum Discovery now holds an 8.79% direct stake in Naim Indah. Tan Wei Loon, Wong Kui Yeong and Khoo increased their indirect interest to 8.79% following Quantum Discovery’s purchase of shares.

At DGB Asia Bhd, formerly known as DSC Solutions Bhd, some 10 million shares or a 6.2% stake valued at RM1.57 million were traded on Oct 23 at 15 sen and 15.5 sen apiece via block trades.

There were no announcements made on Bursa about who had traded DGB Asia’s shares.

However, on Oct 20, DGB Asia saw the emergence of a new substantial shareholder, Satvinder Singh, with a direct stake of 4.5 million shares or a 5.21% stake. Satvinder had purchased the shares on the open market at 10 sen each.

DGB Asia, which is listed on the ACE market, is a technology outfit with a market capitalisation of RM25.2 million.

The company develops software and provides engineering consultancy in specific fields, such as automated identification and data collection.

Meanwhile, Instacom Group Bhd saw 10.24 million shares or a 1.4% stake traded off market for a total value of RM1.70 million, at 19.5 sen apiece between Oct 23 and 28. There were no announcements of the transaction at press time.

Note that the telecommunications service provider had earlier this month proposed to acquire a 35% stake in Neata Aluminum (M) Sdn Bhd for RM58.8 million. The purchase price is to be fully satisfied by the issuance of 309.47 million new shares of 10 sen each in Instacom, at an issue price of 19 sen apiece.

With the acquisition of Neata, Instacom has proposed to diversify its existing activities to include aluminium design and fabrication as well as civil engineering and construction.

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This article first appeared in The Edge Malaysia Weekly, on November 3-9, 2014.