This article first appeared in The Edge Malaysia Weekly on June 8, 2020 - June 14, 2020
Lately, there have been a few instances in which share buybacks at Cypark Resources appeared to coincide with the disposal of shares by the company directors.
According to a recent Bursa Malaysia announcement, Cypark executive chairman Tan Sri Razali Ismail on June 2 disposed of 1.37 million shares that he held directly, and then 290,000 units the following day.
Following the disposals, Razali’s direct interest was reduced to 45.73 million shares, or a 9.9% stake.
On June 4, Cypark announced it was buying back 120,000 shares at a minimum and maximum price of 96.5 sen each, or a total consideration of RM115,800.
This is not the only recent occasion when the interval between the company’s share buyback and the disposal of shares by a company director has been rather short.
On April 20, for instance, Cypark undertook a buyback of 140,000 shares at a minimum price of 88.5 sen and maximum price of 91.5 sen.
On the same day, its group CEO and director Datuk Daud Ahmad sold 93,500 Cypark shares, according to a Bursa filing on April 21.
The following day, the company bought back 140,000 shares at a minimum price of 85.5 sen and a maximum price of 89.5 sen.
On April 22, Cypark bought back 450,000 shares at a minimum price of 85 sen and a maximum price of 86.5 sen. The next day saw Datuk Daud disposing of 100,000 shares in Cypark.
Is the timing of the share buybacks and the selling of shares by the directors merely coincidental?
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