Off-Market Trades: Tomypak Holdings, Goh Ban Huat, SLP Resources, DGB Asia and Harvest Court Industries

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SOME 494.66 million shares worth about RM496.78 million changed hands off market between Oct 15 and 20 in blocks of at least 450,000 shares.

Notable transactions include the sale of 25.48% of Tomypak Holdings Bhd on Oct 15 for RM32.63 million. The 27.89 million shares changed hands at RM1.17 apiece in two direct deals, at discounts to the prevailing open market prices of between RM1.24 and RM1.26 apiece, market data show.

The size of the two direct deals matched the stakes sold by Chow Wen Chye and Teng Chew Guat on Oct 15, who sold 6.59 million shares and 21.3 million shares respectively, according to filings with Bursa Malaysia. While the sizes of the stakes match, filings dated Oct 16 said Chow and Teng sold those shares at RM1.30 apiece.

Separate filings show that New Orient Resources Sdn Bhd bought the same number of shares the same day at undisclosed prices and emerged as a new substantial shareholder in Tomypack. Yong Kwet On is deemed interested in the block. Chow, Teng, and Teng’s spouse Chow Yuen Liong ceased to be substantial shareholders of Tomypak.

Over at Goh Ban Huat Bhd (GBH), some 18.3 million shares were traded off market on Oct 17, the equivalent of a 9.84% stake. The shares changed hands in a series of direct deals at RM1.50 apiece, valuing the block at RM27.45 million. At press time, it was still unclear who the transacting parties were.

Earlier in July, Tan Sri Robert Tan Hua Choon’s GBH proposed a RM632 million purchase of Johor-based Dynac Sdn Bhd, which would have resulted in a reverse takeover of GBH and see it transformed into an oil and gas player. But on Sept 30, the companies mutually agreed to terminate the proposed deal.

Meanwhile, some 19 million shares or a 7.68% stake in SLP Resources Bhd moved off market in a series of direct deals on Oct 16. The shares were priced at 58.5 sen apiece, amounting to a total of RM11.12 million. SLP has not made any announcements to Bursa regarding the transacting parties.

SLP, a plastics packaging manufacturer, has seen its revenue grow this year. For the half year ended June 30, 2014 (1HFY14), revenue came to a total RM89.9 million, up 16% since 2013. Net profit, however, remained relatively flat at RM5.04 million for the period, a marginal 2.2% improvement year on year.

Over the same week, DGB Asia Bhd saw some 9.3 million shares or a 5.7% stake transacted off market in a series of block trades. The shares changed hands on Oct 15, 16, 17 and 20 for RM1.34 million in total, at between 14 sen and 15 sen apiece.

It was unclear who the buyers and sellers were at press time.  DGB operates in the IT sector, providing networking and SAP solutions. It is presently loss-making, posting a RM2.17 million net loss for 1HFY14, slightly more than the RM2.05 million in 2013. Still, JF Apex Research recently named DGB as one of the companies set to benefit from the implementation of the Goods and Services Tax next April.

Elsewhere, Harvest Court Industries Bhd saw 11.36 million shares, or a 4.04% stake, change hands on Oct 16 and 20. The shares were transacted in a series of cross trades and block deals for RM2.45 million, at between 21.5 sen and 22 sen each.

According to an announcement to Bursa, managing director and CEO Datuk Raymond Chan Boon Siew sold 3.7 million Harvest Court shares on the open market on Oct 16 at 21.7 sen each. Chan then ceased to be a substantial shareholder as his stake was reduced to 4.97%, below the 5% threshold for substantial shareholding. On July 31, Chan held 6.29% of Harvest Court after disposing of 1.05 million shares at 24.6 sen apiece.

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This article first appeared in The Edge Malaysia Weekly, on October 27-November 2, 2014.