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This article first appeared in Capital, The Edge Malaysia Weekly on November 19, 2018 - November 25, 2018

TATT Giap Group Bhd saw 45.72 million shares, or a 26.8% stake, change hands in five direct off-market deals on Nov 9, for RM14.17 million or 31 sen apiece. The transacted price was at a premium to the 20.5 sen to 22.5 sen that the stock was trading at on that day before closing at 21 sen.

Dynaciate Engineering Sdn Bhd emerged as a substantial shareholder after buying 22.1 million shares, or a 12.95% stake, on Nov 9. Khoo Song Heng and Woon Kok Kee, who are deemed interested in the stake held by Dynaciate, were appointed as executive directors of Tatt Giap on Nov 14.

Buyers for the remaining 13.85% stake, which also changed hands at 31 sen apiece on Nov 9, were not known at the time of writing.

Tatt Giap shares closed at 21 sen on Nov 8, 20% higher than the day before with nearly five times higher volume.

In reply to an unusual market activity (UMA) query on Nov 9, Tatt Giap said the sharp rise in its share price and trading volume was likely due to interest arising from the four letters of award for contracts totalling RM67 million recently received by its wholly-owned subsidiary, Superinox Pipe Industry Sdn Bhd, as well as the emergence of new substantial shareholders.

Separate filings show it was Pasir Gudang, Johor-based Dynaciate — which focuses on construction, fabrication and engineering works — that awarded Superinox the four subcontracts on Oct 31, for works that will be completed in 2019 and early 2020. Tatt Giap reported a tripling of its net loss to RM3 million for the first quarter ended Aug 31, 2018, with revenue down 77% to just over RM5 million.

Tatt Giap, which has been affected by depressed global steel prices, had also announced its intention to diversify into the property sector. Closing at 21.5 sen last Wednesday (Nov 14), Tatt Giap shares were up 22.86% year to date.

Meanwhile, Bioalpha Holdings Bhd saw nearly 10 million shares, or a 1.2% stake, change hands in a single direct deal on Nov 8 for RM2.4 million, or 24 sen apiece, which was, incidentally, the issue price for its recent private placement in which 49.5 million shares were issued.

Closing at 24 sen last Wednesday, the stock was down 4% year to date, a smaller decline than the 9.5% seen by the broader FBM Emas Index and 6% by the FBM KLCI over the same period.

Bioalpha’s substantial shareholders were William Hon Tian Kok with an 18.4% stake as at Aug 2, Perbadanan Nasional Bhd with 14.93% as at April 6 and Khazanah Nasional Bhd’s wholly-owned Malaysian Technology Development Corp Sdn Bhd with 13.24% equity interest as at March 30.

On Nov 8, MMAG Holdings Bhd saw a 19.67% stake, or 124.86 million shares, change hands in a single direct deal at 23.5 sen each, a discount to open market prices. MMAG, whose businesses include supply chain management services and the distribution of mobile devices, saw its shares trade between 25.5 sen and 26 sen before closing at 26 sen on Nov 8.

Grandstead Sdn Bhd, which is the vehicle of non-executive director Lim Siew Ping and Lim Siew Eng, sold a 19.67% stake to Cypress Valley Sdn Bhd, which is controlled by MMAG chairman and AGA Group founder Datuk Khan Mohd Akram Khan.

The sale makes Khan — who took over as non-executive chairman on Sept 12 and was redesignated executive chairman on Nov 7 — MMAG’s second largest shareholder after non-executive director Chan Swee Ying with a 31.7% stake.

Closing at 25 sen last Wednesday, MMAG was up 25% YTD. The gain would be higher if compared with its YTD low of 16 sen on Feb 9.

 

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