KUALA LUMPUR: South Korea’s largest total cargo delivery company CJ Korea Express is slated to emerge as a substantial shareholder of Century Logistics Holdings Bhd, as the group is expected to sign an agreement for the acquisition of a 30% stake in the latter, according to sources.
Market sources say the shares will be traded at approximately RM1.50 per share. A back-of-the-envelope calculation estimates the block of shares to be sold for about RM172.55 million, based on the group’s total issued and paid-up share capital of approximately 383.45 million shares.
The agreement for the shares is expected to be signed early today.
Yesterday, the group announced that trading in its shares will be suspended from 9am to 12.30pm today, pending the release of a material announcement.
Century Logistics saw a spike in its share price ahead of the suspension, with the counter gaining 18.5 sen or 21% since its closing of 86.5 sen last Thursday.
The counter touched a record high of RM1.05 yesterday, before paring gains to close at RM1.04, up 12.5 sen or 13.7%, translating into a market capitalisation of RM398.79 million.
It was among the top actives on the exchange, with a total of 25.96 million shares crossed during yesterday’s session.
The Edge Financial Daily in January 2015 reported that the major shareholders of the group were looking to sell their equity interest in the company.
Century Logistics’ largest shareholder is its executive chairman Datuk Richard Phua Sin Mo (pic), with a total stake of 99.95 million shares or 26.16% of the company as at April 26.
Other substantial shareholders include managing director Steven Teow Choo Hing, who has an 11.94% stake, while his brother Teow Choo Chuan — who is the group’s executive director — holds a 5.62% stake. Both Choo Hing and Choo Chuan are nephews of Phua.
In March 2014, The Edge weekly reported that Felda Global Ventures Holdings Bhd was in talks with Phua to acquire a significant stake in Century Logistics. However, the deal never materialised as the talks were called off.