Last Wednesday, loss-making Tatt Giap Group Bhd proposed to change its name to Dynaciate Group Bhd following the emergence of Dynaciate Engineering Sdn Bhd as its substantial shareholder with a 12.95% stake on Nov 9.
Johor-based Dynaciate Engineering is jointly owned by Woon Kok Kee and Khoo Song Heng, both of whom are now executive directors at Tatt Giap.
A quick check with the Companies Commission of Malaysia reveals that Dynaciate Engineering reported a profit after tax of RM23.67 million on revenue of RM243.39 million for its financial year ended June 30, 2017.
On Oct 31, Tatt Giap was awarded four contracts worth a total of RM67 million by Dynaciate Engineering for sub-contracting works in Johor. Going forward, Dynaciate Engineering is expected to identify projects that can be injected into Tatt Giap.
Interestingly, Dynaciate Engineering’s entry cost of 31 sen apiece in Tatt Giap represents a whopping 47.6% premium to the latter’s closing price of 21 sen on Nov 9.
The momentum continued this month, with Tatt Giap rising from 17 sen on Nov 1 to close at 25 sen last Thursday — a hike of 47% within a short three-week span.
It is worth noting that something similar happened in the company prior to this. Last December, Tan Sri Alex Ooi Kee Liang became a substantial shareholder of Tatt Giap with a 12.54% stake. Expectations were high that Ooi — dubbed “Penang’s Condo King” — could be the right person to turn Tatt Giap around because of his vast experience in the property industry.
The optimism that accompanied Ooi’s entry saw Tatt Giap’s share price jump to 20 sen on Jan 9, from 15 sen on Dec 26 last year. However, he exited Tatt Giap less than two months later and the share price slipped back to 15 sen in mid-February.
Hopefully, Tatt Giap’s minority shareholders won’t be disappointed this time around.