China Automobile Parts sees 16.46% stake cross off-market

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KUALA LUMPUR (July 29): China Automobile Parts Holdings Ltd (CAP) saw 100.61 million shares traded off-market today, representing a 16.46% stake in the China-based company.

According to Bloomberg data, the shares were moved in three blocks ranging from 300,000 to 100 million, valued at RM85,500 to RM28 million per block.

The shares were moved between the price of 28 sen and 29.5 sen apiece, for a total value of RM28.18 million.

It is not known who the parties involved in the trades are.

It is worth noting that CAP (fundamental: 1.95; valuation: 1.8) had announced that Australia-listed Siburan Resources Ltd (SBU) will emerge as a substantial shareholder in the company upon the completion of a proposed acquisition of a 16.67% stake from CAP's major shareholder, Guotai International Holdings Ltd, for RM60 million or 60 sen per CAP share.

Guotai and SBU had signed a conditional binding heads of agreement on May 15 this year for the proposed share acquisition.

Under the agreement, SBU will acquire 100 million shares in CAP. To satisfy the purchase consideration, SBU will issue to Guotai 417.36 million shares at 5 Australian cent apiece totalling RM60 million, which will see Guotai taking a controlling 62.5% stake in SBU.

According to Bloomberg, Guotai still controls some 159.75 million shares or a 26.13% stake in CAP as at April 30, 2015.

This is followed by Maybank Kim Eng Pte Ltd's 10.34% stake, Bridge Global's 9.81% stake and CAP's 8.18% stake, as at April 30, 2015.

The stock inched up 1.5 sen or 5.36% to close at 29.5 sen today, giving it a market capitalisation of RM171.18 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)