Boon Koon sees 3.37% stake traded off-market

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KUALA LUMPUR (July 16): Boon Koon Group Bhd saw 10 million shares cross off-market today. This represents 3.37% of the company's total 297.11 million shares.

According to Bloomberg data tracking trade of 300,000 shares and more, the shares were transacted in one block for RM4.3 million, or 43 sen per share — at a discount of 5.5% over today's closing of 45.5 sen.

It is not immediately known who the parties involved in the transaction are.

Nonetheless, it is interesting to highlight that Boon Koon’s single largest shareholder, Datuk Seri Chiau Beng Teik has been actively accumulating shares in the Penang-based rebuilt commercial vehicle manufacturer in the past year.

On April 16, Chiau bought 10.28 million shares, or a 3.45% stake, off market, for RM4.41 million or at 43 sen apiece.

This brought Chiau’s shareholding in Boon Koon to 85.19 million shares or a 28.67% direct stake — a step closer to the mandatory general offer (MGO) threshold.

Under Malaysian rules, an offer to acquire the remaining interest in a company must be extended to the other shareholders once the major shareholder and parties acting in concert hold more than 33% interest.

Also, if Chiau were to acquire the 3.37% stake in Boon Koon, this will up his stake to 32.04%, bringing it much closer to the MGO threshold of 33%.

Chiau, 57, is the founder and deputy executive chairman of building material distributor Chin Hin Group Bhd.

Note that in April last year, Chiau first surfaced as a substantial shareholder in Boon Koon after acquiring a 20.02% direct stake from the group’s founding director, Datuk Goh Boon Koon. He was then appointed as Boon Koon’s non-independent non-executive chairman on April 25, 2017.