Off-Market Trades: PanPages Bhd, MQ Technology Bhd, China Stationery Ltd, Barakah Offshore Petroleum Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on July 3, 2017 - July 09, 2017.
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BUSINESS platform provider PanPages Bhd saw 70.9 million shares, or a whopping 26.73% of its share capital, change hands off market for a total of RM24.8 million in the period under review.

The bulk of the shares — 70 million or a 26.37% stake — crossed in a direct business transaction on June 22 at 35 sen apiece — a three sen or 9% premium to PanPages’ closing price that day.  The buyer is likely Yap Hoong Chai through Innofarm Sdn Bhd, which emerged as a substantial shareholder after buying 70 million shares on the same day.

The sellers may include PanPages group managing director and founder Tan Tian Sin, whom filings show is no longer a substantial shareholder after disposing of 57 million shares or a 21.4% stake off market on June 22. On the same day, former non-executive director Lau Kok Fui, who retired in May, also ceased to be a substantial shareholder after selling 13 million shares or a 4.9% stake off market.

PanPages had on June 20 completed the acquisition of a 30% stake in loss-making grocery retailer G-Mart Borneo Retail Sdn Bhd from integrated poultry farmer Lay Hong Bhd for RM10.75 million. Closing at 32 sen last Wednesday, PanPages is up 8.5% year to date.

Meanwhile, Penang-based high precision mould maker MQ Technology Bhd saw 41.5 million shares or a 10% stake change hands off market for RM2.48 million in three deals. A single block of 40 million shares crossed at six sen apiece in a direct transaction on June 20, 20% higher than the five sen apiece on the open market. Another 486,000 shares changed hands at five sen each that day.  The next day,  1.05 million shares crossed off market at 5.5 sen apiece, which was also its closing price.

On June 20, Goh Boon Soo ceased to be a substantial shareholder of MQ Technology after disposing of 40 million shares or a 9.6% stake to Gerald Nicholas Tan Eng Hoe, who surfaced as a new substantial shareholder. Eng Hoe, a banker turned techpreneur, was previously embroiled in a boardroom tussle at MNC Wireless Bhd. The share price of MQ Technology has risen 11% to five sen year to date.

Over at integrated plastic stationery firm China Stationery Ltd, 80.77 million shares or a 6.55% stake crossed off market for RM5.65 million. The bulk of the shares — 80.4 million — changed hands in a single direct trade on June 20 at seven sen apiece, which was the price they fetched on the open market. Two days later, another 378,000 shares crossed off market at six sen per share. Neither the buyer nor the seller was known at press time.

On June 22, Barakah Offshore Petroleum Bhd saw 48.62 million shares or a 5.89% stake change hands at 59.5 sen apiece, or a total of RM28.92 million, in a direct deal. This was likely a left-hand-to-right-hand transaction involving group president and CEO Nik Hamdan Daud, who transferred 48.62 million shares to United Power Group Holdings Ltd, a Hong Kong-incorporated firm linked to him.

At AppAsia Bhd — a mobile app, digital content and e-commerce solutions provider — 16.5 million shares or a 5.64% stake crossed off market at between 25 and 30 sen apiece apiece or RM4.22 million in total on June 21 and 22. The sellers could include Satvinder Singh, who sold two million shares on June 22, paring his holding to 15.8 million shares or a 5.4% stake. AppAsia has proposed to place out up to 10% of its share base at a price to be determined.

Meanwhile, APFT Bhd saw 22.58 million shares or a 4.12% stake change hands off market at four sen apiece on June 20 and 21. The transacting parties were not known.