Off-Market Trades: Hap Seng Consolidated Bhd, Sime Darby Bhd, Tenaga Nasional Bhd, Iris Corp Bhd, Malayan Banking Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on May 8, 2017 - May 14, 2017.
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BETWEEN April 26 and May 2, some 874.79 million shares worth RM2.29 billion changed hands off market in blocks of at least 400,000 shares.

A noteworthy transaction was seen at Hap Seng Consolidated Bhd, where 25 million shares changed hands at RM190 million on April 26. At RM7.60 apiece, the transaction price was a discount to the day’s trading range of RM8.86 to RM9.03 per share, market data shows.

Hap Seng Consolidated’s share price ran up to a multi-year high of RM9.21 on Feb 13. It closed at RM8.98 last Thursday.

Filings show that the block of shares was acquired by Hong Kong-based Lei Shing Hong Investment Ltd, which now holds 325.68 million shares or a 13.08% stake in Hap Seng Consolidated. Lei Shing Hong Investment is one of several investment vehicles under Tan Sri Panglima Lau Cho Kun, who has a 73.91% indirect stake in Hap Seng Consolidated.

During the period under review, four banking heavyweights saw vibrant market trading. Furthermore, CIMB Group Holdings Bhd, Hong Leong Bank Bhd, Malayan Banking Bhd (Maybank) and Public Bank Bhd hit multi-year highs recently.

There was a large number of transactions at Maybank, which saw 42.36 million shares being traded at RM405.41 million over the period. The transaction prices ranged from RM9.46 to RM9.62.

Filings show that some of these transactions were done by institutional funds. Amanahraya Trustees Bhd — Amanah Saham Bumiputera acquired five million Maybank shares and sold 40.71 million shares over the period while the Employees Provident Fund (EPF) disposed of 25.55 million Maybank shares. The counter hit a five-year high of RM9.28 on May 2, and closed at RM9.20 last Thursday.

Over at CIMB Group, some 8.33 million shares were transacted at RM5.74 to RM5.80 apiece, or RM47.94 million in total. It is not known who the transacting parties were.

Meanwhile, three million Hong Leong Bank shares changed hands at RM13.78 to RM13.82 each, or RM41.4 million in total.

Investors also traded a total of 3.88 million Public Bank shares at RM20 to RM20.48 apiece, or RM78.33 million in total.

Filings show that part of these trades involved the EPF, which sold 1.56 million Public Bank shares and acquired 1.02 million shares during the period. It also disposed of 1.57 million Hong Leong Bank shares and acquired 500,000 shares over the same period. The EPF now owns 14% of Public Bank and 12.62% of Hong Leong Bank.

On April 26 and 27, over 18.31 million Sime Darby Bhd shares worth RM170.81 million were traded at RM9.32 to RM9.33 apiece. This included a single transaction of about 10.48 million shares at RM9.33 apiece, or RM97.81 million in total, on April 27.

Permodalan Nasional Bhd picked up the 10.48 million shares and now holds 391.93 million shares or a 5.76% stake in Sime Darby, filings show.

Tenaga Nasional Bhd, meanwhile, saw 37.62 million shares worth RM522.83 million traded at RM13.86 to RM13.92 apiece. This included two trades of 12.5 million shares and 18.42 million shares at RM13.90 a share on April 28 and May 2 respectively.

Some of these transactions were done by the EPF and Amanahraya Trustees Bhd — Amanah Saham Bumiputera, including the latter’s disposal of 10.6 million shares at an undisclosed price on April 28.

TNB’s share price has recovered from its one-year low of RM13.88 in early February. It closed at RM13.90 last Thursday.

There was also a large number of trades at Iris Corp Bhd, which saw 55.82 million shares change hands at RM11.35 million or 19 sen to 21.5 sen a share.

On April 26, Iris Corp managing director Datuk Tan Say Jim sold two million shares at 20.5 sen apiece, filings show. The transaction price was on the higher side of the counter’s price range of 18.5 sen to 21 sen that day. Tan has been paring down his stake in the company and ceased to be a substantial shareholder last December. He now owns 2.35% of the company.