Thursday 28 Mar 2024
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This article first appeared in The Edge Malaysia Weekly on January 10, 2022 - January 16, 2022

There have been interesting developments at SMTrack Bhd, whose shares were trading just below 10 sen a month ago before rising to a two-year high of 30 sen last Friday.

First, the radio frequency identification solutions company completed a private placement exercise on Dec 24, raising RM6.84 million, based on a placement price of 7.47 sen per share.

Then on Dec 29, Tan Sri Lee Kim Yew, the founder and executive chairman of Country Heights Holdings Bhd, emerged as a substantial shareholder of SMTrack after the acquisition of 28.5 million shares or a 5.05% stake via an open market transaction.

Last Thursday, SMTrack disclosed that it is in the early stages of negotiations with a government-linked company in relation to the latter’s interest in the company.

A day later, Datuk Justin Lim Hwa Tat and Datuk Seri Tan Choon Hwa also surfaced as the company’s new substantial shareholders, holding 5.14% and 5.4%, respectively.

It appears that something big could happen as a signing ceremony — between SMTrack, Country Heights, Jiankun International Bhd, Sersol Bhd, AHB Holdings Bhd, Techna-X Bhd, MQ Technology Bhd and 5G Infratech Malaysia Sdn Bhd — is scheduled to be held on Jan 13.

Note that Lee’s son-in-law Jared Lim is executive director of Techna-X, while Hwa Tat is managing director of Sersol. Tan sits on the Jiankun board as executive director.

All these stocks have gained traction in recent days. While investors will be waiting to see what the collaboration is about, they will still need to be mindful as the excitement does not necessarily translate into returns.

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