KUALA LUMPUR (Dec 4): Rapid Synergy Bhd, which is 29.6%-owned by Datuk Dr Yu Kuan Chon, has invested RM12.67 million to buy 923,800 shares or a 0.37% stake in Hong Leong Capital Bhd (HLCap), a filing with Bursa Malaysia revealed this evening.

At the same time, Rapid Synergy, a tooling products manufacturing and property investments company, had disposed of 973,000 shares or 0.22% stake in Shangri-la Hotels (M) Bhd, cashing out some RM7.02 million.

Rapid Synergy told the stock exchange that the investment in HLCap was made in the ordinary course of its investment business, as it is consistent with the group's long term intention of deploying capital into suitable quoted investment opportunities.

As for its stake disposal in hotels and beach resorts operator Shangri-la Hotels, Rapid Synergy said the disposal offered a good opportunity to unlock and realize the value of its investment. It also allows the group to allocate the resources for other opportunities.

Interestingly, HL Cap had requested Bursa Malaysia yesterday to grant it a lower public shareholding spread requirement, after failing to rectify it for more than a year.

HL Cap, which has a public spread of 18.67%, also applied for another extension of six months to comply with the 25% minimum requirement. It was the fourth time HL Cap applied for an extension since early March 2013.

Yu, who is also chairman and executive director of YNH Property Bhd, made headlines when he successfully blocked banking tycoon Tan Sri Quek Leng Chan from taking HL Cap private in January last year.

To recap, Quek offered to buyout all HL Cap shares which he did not own, at RM1.71 per share, through a conditional offer.

Today, Quek remains the single largest shareholder in HL Cap, holding 81.33% or 200.8 million shares through Hong Leong Financial Group Bhd.

Meanwhile, Yu has ceased to be a substantial shareholder of HL Cap since end-August this year. But he still owns a 4.774% stake or 11.787 million shares in the company.