Friday 29 Mar 2024
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KUALA LUMPUR (Nov 19): ACE-listed Asia Bioenergy Technologies Bhd continues to accumulate shares in VSolar Group Bhd, raising its shareholdings in the latter to 17.1%, following its recent shares acquisition.

In a filing with Bursa Malaysia, the marketer and distributor of software solutions said AsiaBioenergy had purchased an additional 1.15 million shares, representing 0.41% of VSolar.

Asia Bioenergy bought the shares through its subsidiary Asiabio Capital Sdn Bhd yesterday (Tuesday, Nov 18), but the transaction price was not disclosed.

Asia Bioenergy has been accumulating shares in Vsolar since mid-October, when it had a 9.32% equity interest in VSolar then.

According to earlier filings, Asia Bioenergy had acquired some 7.2 million shares through three transaction since last Thursday (Nov 13). Those purchases lift its shareholdings to 16.69% or 47.05 million shares in the company.

VSolar was featured as a Stocks With Momentum on Nov 3, by The Edge Research.

In a report, The Edge Research said Vsolar's share price has surged by 58.3% to close at 19 sen, over the last two weeks.

"There may be two catalysts for the rally," it said, adding the emergence of AsiaBioenergy as a substantial shareholder with a 10.47% stake, and its foray into solar energy.

"VSolar has diversified into the solar energy industry, and signed a 21-year renewable energy power purchase agreement with Tenaga Nasional in Aug 2013," it added.

"Prior to the change, VSolar has been in the red since 2010, with losses widening since 2011 to RM2 million in 2013. Revenue and profitability declined further in 1H14 — perhaps indicating that benefits of its new business direction have not kicked in yet," The Edge Research said.

According to the report, it said Vsolar was trading at high valuations of 3.5 times book, likely due to its small asset base. The company has net cash of RM3.6 million, as at June 30, 2014.

VSolar share price closed at 17.5 sen today, inching up 1 sen to 6.06%, giving it a market capitalisation of RM46.51 million.

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