Off-Market Trades: Seacera Group Bhd, Timberwell Bhd, Zecon Bhd, Acme Holdings Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on November 27, 2017 - December 03, 2017.
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SEACERA Group Bhd saw 30.88 million shares or an 8.77% stake change hands off market in direct deals on Nov 17 and 20.

On Nov 17, a total of 12.13 million shares in the ceramic product manufacturer were transacted at 37 sen apiece, a substantial discount to the 75.5 sen the stock fetched on the open market that day. On the same day, 1.2 million shares changed hands at 75 sen.

On Nov 20, 10 million shares were traded in a direct deal at 75 sen apiece while a further 7.54 million shares changed hands at between 54.5 sen and 69.5 sen apiece, below the 71.5 sen to 73 sen they fetched on the open market that day.

On Nov 17, Seacera managing director Zulkarnin Ariffin transferred 13.33 million shares to Synergy Platform Sdn Bhd, a company he is deemed interested in. Filings show he transferred another 7.54 million shares to Synergy Platform on Nov 20, leaving him with a 7.38% direct stake and 8.05% indirect equity interest.

The seller of the 10 million shares on Nov 20 was Noble Summer Sdn Bhd, a vehicle of Seacera chairman Datuk Mansor Masikon. After the sale, he was left with a 7.206% indirect stake.

Over at timber logging company Timberwell Bhd, 6.07 million shares or a 6.82% stake changed hands on Nov 17 at 60 sen apiece via a direct deal. The counter saw only 2,000 shares traded at 63 sen each on the open market that day.

Filings show that the seller of the 6.07 million shares was Lam Man Kai and the buyer, Tan Toeng Swie @ Lam Toeng Sui. With the purchase, Tan emerged as the second largest shareholder in Timberwell with a 13.63% stake as at Nov 17.

Timberwell’s largest shareholder is Datuk Seri Tiong King Sing, who is the managing director, with a 23.82% stake. Tiong is the member of Parliament for Bintulu and the president of the Progressive Democratic Party.

Zecon Bhd saw 4.07 million shares or a 3.1% stake traded off market at 70 sen apiece via several direct deals on Nov 16. The price was at a discount to the 72 sen to 72.5 sen the stock fetched on the open market that day.

The next day, Zecon requested the trading of its shares be suspended from 2.30pm, pending a material announcement. However, on Nov 20, the company said the planned signing of an agreement on its proposed disposal of 49% equity interest in Zecon Medicare Sdn Bhd for a tentative cash consideration of RM155 million has been postponed due to unforeseen circumstances. Details of the transaction will be announced once the agreement has been signed, it added.

Zecon’s shares, which resumed trading at 9am on Nov 21, closed at 75 sen, down from 79.5 sen when it was suspended on Nov 17. The stock closed at 74 sen on Nov 22, after having appreciated 34.55% or 19 sen since the start of the year. The counter started the climb in early October, reaching a peak of 79.5 sen on Nov 17 — the day of the trading suspension when the share price rose 8.9% or 6.5 sen in the morning session.

At Acme Holdings Bhd, 3.2 million shares or a 1.53% stake changed hands off market in a direct deal at 34 sen apiece on Nov 17. The thinly traded counter did not see any trading that day. It last closed at 36.5 sen on Nov 14 with 34,000 shares traded. Last Tuesday, the counter closed at 34 sen with 9,000 shares traded.

Filings show that the seller of the 3.2 million shares was Supptech Holdings Sdn Bhd, the plastic and wooden audio speaker system manufacturer’s largest shareholder. After the sale, it was left with a 51.54% stake.

Supptech is controlled by Datuk Seri Dr Lee Kuang Shing, his wife Datin Seri Tan Siew Hong and Khaw Hooi Huang. The disposal was to increase the public shareholding spread of Acme to more than 25%, as required under listing rules.