Off-Market Trades: M-Mode Bhd, RGB International Bhd, Boon Koon Group Bhd, Johan Holdings Bhd, Perak Transit Bhd, Sentoria Group Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on June 5, 2017 - June 11, 2017.
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M-MODE Bhd saw 61.13 million shares or a whopping 37.57% of its share capital change hands off market for RM18.36 million. The bulk of the shares — 50.89 million shares — crossed in a single direct trade on May 30 at 30 sen apiece, 15.5% below the 35.5 sen they were fetching on the open market.

Filings with Bursa Malaysia show that founder and managing director Datuk Lim Thean Keong transferred the shares to his vehicle, Corvina Sdn Bhd. It is interesting to note that he also disposed of 6.1 million shares while his wife, Datin Ching Wai Teng, sold 3.65 million shares. Meanwhile, director Ong Chee Koen acquired 9.76 million shares, or a 6% stake.

On a downward trend last year, M-Mode’s shares lost more than half their value when they closed at 21 sen on Dec 22 last year. However, this year, the share price has rebounded, rising 78% to close at 36.5 sen last Wednesday.

The company has four core businesses — mobile web games distribution, video content distribution, mobile paper publishing and mobile payment.

Separately, RGB International Bhd saw 61.46 million shares or a 4.65% stake cross off market for RM16.05 million in direct and block trades.

A single block of 50 million shares crossed at 26 sen apiece in a direct deal on May 30, 10.3% lower than the 29 sen they were fetching on the open market. Ten million shares changed hands at 26 sen in a single direct deal on the same day.

RGB’s share price corrected last week, going down to 29 sen on June 1 from 34 sen previously. The selldown came as the group published results for its first quarter ended March 31, which said that revenue had fallen 32.8% year on year to RM37.7 million. Net profit rose marginally to RM6.2 million from RM5.93 million.

Meanwhile, Boon Koon Group Bhd saw 11.5 million shares or a 4.16% stake cross off market for RM4.95 million. Datuk Seri Chiau Beng Teik acquired the shares on May 29, according to Bursa filings. This gives him a 24.18% stake in the company.

The transaction took place just three days after Chiau was redesignated as non-executive chairman. At the same time, Datuk Goh Boon Koon resigned as executive chairman while executive director Goh Peng Yeong also resigned.

Johan Holdings Bhd saw 17 million shares or a 2.73% stake cross off market for RM4.76 million. In a single direct trade on May 24, the shares were sold at 28 sen apiece, above the 26.5 sen to 27 sen they were fetching on the open market.

Johan’s share price dived in the past month after a sharp rally in early April saw it almost double to 37 sen apiece. Last Wednesday, it closed at 23 sen. However, this is still substantially higher than last year’s average price of 12 sen apiece.

Perak Transit Bhd saw 19.8 million shares or a 1.73% stake cross off market for RM4.95 million. The shares were sold at 25 sen apiece in three direct transactions on May 29. This is near the all-time high of 28 sen.

Sentoria Group Bhd saw 10 million shares or a 2.05% stake change hands for RM8.3 million. The shares crossed in a single direct trade on May 25 at 83 sen each, below the 86 sen to 86.5 sen they were fetching on the open market.

Filings with Bursa Malaysia show that joint managing directors Datuk Chan Kong San and Datuk Gan Kim Leong disposed of the shares in a “merit deal” via their vehicle, Sentoria Capital Sdn Bhd. They retain a combined 60.25% stake in the company.