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This article first appeared in The Edge Malaysia Weekly, on April 25 - May 1, 2016.

SOME 846.4 million shares worth RM657.3 million changed hands off market between April 13 and April 19. Among the more notable transactions were those at property developer Talam Transform Bhd, which saw an 11.9% stake change hands off market, and at Berjaya Auto Bhd, where 8.9% equity interest changed hands.

On April 18, some 500 million Talam Transform shares or an 11.9% stake worth RM42.5 million crossed in three direct deals just after the closing bell at 8.5 sen apiece. This was 54.5% higher than the closing price of 5.5 sen on that day. The transaction price, however, still represents a 19% discount to its unaudited net asset value per share of 10.5 sen as at Jan 31, 2016.

According to filings with Bursa Malaysia, the buyer is likely to be Tan Sri Chan Ah Chye @ Chan Chong Yoon, a director and substantial shareholder of the company, and the seller is likely Kumpulan Europlus Bhd (KEuro). Last August, KEuro said it had entered into a supplemental agreement to dispose of 900 million shares in Talam Transform, a loss-making associate company that has affected its financial performance.

With the first tranche of 500 million shares sold, the sale of the second tranche — involving 400 million shares at 9.5 sen apiece or 

RM38 million in total — is expected to be completed within 18 months of Feb 16, 2016, when the agreement became unconditional. Upon the completion of the share sales, KEuro’s stake in Talam Transform will be reduced by 21.3% to 2.2% and it would then no longer be required to consolidate the latter’s accounts into its books.

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Over at Mazda distributor Berjaya Auto Bhd, 102.2 million shares or an 8.9% stake worth RM214.5 million crossed in various direct deals at RM2.10 apiece on April 14 and 15, slightly higher than its closing prices of RM2.18 and RM2.19 on the two days. Parties to the deals were not revealed at the time of writing, but it was reported that parent company Berjaya Corp Bhd intends to further pare down its holdings in the company.

In fact, Berjaya Corp has disposed of RM140.3 million shares or a 12.3% stake in the past year. Filings with Bursa show that on April 14, the Employees Provident Fund acquired 7.5 million shares, increasing its stake by 0.6% to 7.3%, while mutual fund Skim Amanah Saham Bumiputera bought 4.1 million shares, upping its stake by 0.4% to 5.7%.

At Berjaya Food Bhd, the operator of the Kenny Rogers Roasters and Starbucks Coffee chains, Berjaya Corp also sold 29.4 million shares or a 7.8% stake via direct deals to unknown buyers at RM1.90 apiece on April 13 and 15, slightly lower than the RM1.99 and RM1.92 they fetched on the open market at the time. After the sale, Berjaya Corp’s stake in the company is reduced to 42.6% from 52.7% a year ago.

Meanwhile, Sabah-based timber player Priceworth International Bhd saw 30 million shares or a 4.6% stake transacted in a single direct deal on April 14 at 10.5 sen apiece, a 16% discount to the open market price of 12.5 sen at the time. The identities of the buyer and seller were not known at the time of writing.

Earlier on March 23, a new tranche of redeemable convertible notes with an aggregate value of RM3 million were issued. On April 1, redeemable convertible notes worth RM3 million were converted to 30 million new shares at an issue price of 10 sen per share.

Although Bursa filings show major shareholder and managing director Lim Nyuk Foh selling 500,000 shares on Feb 28, his shareholding of 13.43% is still above the 10.46% he had just four months ago on Nov 6, 2015, according to the company’s annual report.

Elsewhere, property developer Y&G Corp Bhd saw eight million shares or a 4% stake cross in a single direct deal at RM1 apiece on April 18, 12.3%, less than what the shares fetched on the open market that day. While the buyer was unknown at the time of writing, the seller was Kinta Aroma Sdn Bhd, a vehicle controlled by Datuk Seri Yap Seng Yew and family. After the disposal, Kinta Aroma still owns a substantial 63.5% stake.

With a primary focus in the Klang Valley, Y&G’s revenue more than tripled from RM52.4 million in 2011 to RM165.6 million in 2015, while net profit surged 333% from RM6.7 million to RM28.9 million during the five-year period. The company resumed dividend payments last year and paid an interim dividend of five sen per share each for FY2014 and FY2015, which translates into a 4.4% yield. 

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