Friday 29 Mar 2024
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This article first appeared in Personal Wealth, The Edge Malaysia Weekly on May 29, 2017 - June 4, 2017

PROPERTY developer Yong Tai Bhd was among the companies that saw notable off-market transactions in blocks of at least 490,000 shares during the period.

Impression Culture Asia Ltd exited the company just months after it surfaced as a major shareholder, selling 107 million shares or a 24.56% stake on May 19 in a direct deal at RM1.10 apiece or RM117.7 million in total.

The price was at a 26.7% discount to the stock’s closing price of RM1.50 on that day.

The shares were bought by Full Winning Developments Ltd, a company incorporated and registered in the British Virgin Islands. It is a wholly-owned subsidiary of Hong Kong-listed Co-Prosperity Holdings Ltd, which manufactures and trades in fabrics and clothing.

Impression Culture Asia is a wholly-owned unit of Hong Kong-listed packaging manufacturer Sino Haijing Holdings Ltd. It is worth noting that China Water Industry Group Ltd chairman and executive director Deng Jun Jie is a shareholder in both Sino Haijing (4%) and Co-Prosperity (13%).

The transaction came four days after Yong Tai announced Sino Haijing’s share sale agreement with Co-Prosperity, although no rationale for the deal was offered. The stock closed last Tuesday at RM1.45, giving it a market capitalisation of RM631.74 million.

Impression Culture Asia first surfaced on Nov 10 last year after subscribing for 150 million Yong Tai shares, or a 48.33% stake, in a special share issue at 80 sen apiece, or RM120 million in total. It also subscribed for 200 million new irredeemable convertible preference shares at the same price.

The sale comes as Yong Tai diversifies into tourism and culture-related property development. The company has said it is also looking at disposing of its textile and garment businesses in the near future.

Over at information technology firm NetX Holdings Bhd, 62 million shares or a 9.9% stake changed hands in a direct deal on May 17 at eight sen apiece, or RM4.96 million in total — at a slight premium to its closing price of seven sen that day. At the time of writing, no changes to substantial shareholding were announced.

It is interesting to note that the number of shares transacted matched the stake owned by Hong Kong-based brokerage firm Sanston Financial Group Ltd. The only other two shareholders with more shares are Asiabio Capital Sdn Bhd and KGI Asia Ltd.

The counter had been largely quiet the past year but surged earlier this month, going from four sen to as high as 10 sen on May 11. It closed at seven sen last Tuesday.

Samchem Holdings Bhd saw 14.5 million shares or a 5.3% stake change hands in several direct deals on May 17 and 18 at 85 sen apiece. The transactions came ahead of a potential boardroom tussle at the company.

On May 19, the company received a special notice from seven shareholders, collectively holding over 19% equity interest, seeking to remove executive director Ng Soh Kian at an upcoming extraordinary general meeting. The date of the EGM has yet to be set. The seven include executive director Chooi Chok Khooi and chief operating officer Eugene Chong Wee Yip, who was appointed on May 19.

The notice came weeks after former CEO Datuk Ng Lian Poh (no relation to Ng Soh Kian) resigned on May 5. Lian Poh, who had been CEO since 2014 and executive director for at least seven years, is a brother of previous CEO and current executive chairman Ng Thin Poh, who is the single largest shareholder with 44.14% equity interest.

The counter had seen a good run over the past year, up 159%, although it had retreated by 19% since March 31, when it hit RM1.15 a share.

At Versatile Creative Bhd, its major shareholder Rica Holdings (M) Sdn Bhd continued paring its stake. It sold 5.26 million shares on May 18 and 19 at 95 sen apiece, or RM5 million in total.

The transacted prices were at a steep discount to the counter’s closing price of RM1.46 on May 18 and RM1.54 on May 19. After the disposal, Rica is left with 12.58 million shares or a 10.72% stake, less than half its 23% equity interest in February. The company is the vehicle of non-executive directors Wan Tak Chuen and Datuk Chew Weng Kit.

 

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