Off-Market Trades: iDimension Consolidated and Ni Hsin Resources

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A total of 532.77 million shares worth RM860.08 million changed hands in blocks of at least 500,000 shares, through off-market transactions, from Sept 17 to 23.

At Versatile Creative Bhd, 27.66 million shares or 25% equity interest changed hands, through direct trades on Sept 19. This came after the completion of a share sale agreement between Iris Healthcare Sdn Bhd — a subsidiary of Iris Corp Bhd, and Rica Holdings (M) Sdn Bhd — owned by individuals Wan Tak Chuen and Datuk Chew Weng Kit.

After the transaction, Iris Corp is left with 39.6% indirect interest in Versatile Creative, compared with 64.6% previously.

In the first quarter ended June 30, Versatile Creative posted a net loss of RM1.84 million, compared with a net profit of RM189,000 in the previous corresponding period. Nevertheless, the paper packaging products manufacturer’s share price has gained 11% to 55.5 sen, since it released its first quarter results on Aug 27.

Versatile Creative had previously proposed to delist from Bursa Malaysia after Iris Corp — its largest shareholder — offered to buy the remaining shares it does not own, at 50 sen apiece. But the proposal was shot down by the minority shareholders.

Meanwhile, iDimension Consolidated Bhd saw 47.56 million shares or 12% equity interest change hands, through direct and block trades on Sept 18 and 19.

Filings with the stock exchange reveal that Singapore-based Advance Capital Partners Pte Ltd has ceased to be a shareholder, after it sold its entire stake in the company. The shares had been given to Advance Capital Partners, after it converted its redeemable convertible preference shares, following an earlier subscription agreement with iDimension in 2013.

iDimension sank further into the red in the second quarter ended June 30. It reported a net loss of RM2.17 million, compared with a net loss of RM63,000 a year ago, despite posting a higher revenue of RM5.42 million, from RM4.06 million.

Elsewhere, Ni Hsin Resources Bhd founder Hsiao Tsai Sheng disposed of a 10% stake or 23.6 million shares in the utensil manufacturer, in a direct trade on Sept 18 at 30 sen apiece. The buyer of the block is unknown at this juncture.

The week before, there had been market speculation that Ni Hsin may be a target of a reverse takeover by an oil and gas outfit. Ni Hsin’s share price has surged 148% since July 17, from 20.5 sen to 51 sen on Sept 24 (Wednesday). The company was issued an unusual market activity query by Bursa, following the spike in its share price. However, it told the stock exchange that it was unaware of the cause of the share price movement.

Over at Priceworth International Bhd, the timber player saw 31.7 million shares or 8% equity interest transacted off market, in direct trades on Sept 23. The buyers and sellers of the shares were unknown at the time of writing.

Priceworth’s share price has seen a surge in recent weeks. The stock gained 18.2% from Aug 22, to 26 sen on Sept 24 (Wednesday).

According to its financial year 2013 results, it reported a lower net loss of RM13.7 million, compared with RM56.94 million a year ago. However, revenue fell to RM166.34 million, from RM188.42 million.

Chin Well Holdings Bhd saw 21.5 million shares or a 7.8% stake transacted off market, in direct trades on Sept 19.

Filings reveal that Benua Handal Sdn Bhd — the investment vehicle of Tsai Yung Yu — had acquired the block of shares, which increased his shareholding to 58.12%. Tsai is co-founder of Chin Well Holdings, which manufactures integrated fasteners and wire rods. The seller of the shares is unknown at this juncture.

Chin Well Holdings saw its net profit for FY2013, increase 48.3% year-on-year to RM32.85 million. Meanwhile, revenue rose 5.1% to RM485.34 million.

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This article first appeared in The Edge Malaysia Weekly, on September 29-October 5, 2014.