Insider Moves: CIC, Kenanga Holdings, Lion Corp, StemLife, Sersol, Inari Amertron

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NOTABLE filings

Notable shareholding changes from May 11 to 15 included the disposal of 14.65 million shares in Central Industrial Corp Bhd (CIC) by AmanahRaya Trustees Bhd on May 11.

The fund ceased to be a substantial shareholder in CIC (fundamental: 1.80; valuation: 1.20) following the stake sale, filings show. Most of the shares were believed to have been picked up by Gan Lock Yong and Tan Ban Aik, who acquired 4.58 million and 3.66 million shares respectively via a direct business transaction.

The two are believed to be linked to Tan Sri Robert Tan Hua Choon, a prominent figure with substantial stakes in several public listed companies on Bursa Malaysia. As a result of the trades, Gan and Tan now collectively hold an 18% stake in CIC, which is primarily involved in the manufacture of self-adhesive tapes and labels.

Meanwhile, K&N Kenanga Holdings Bhd (fundamental: 1.80; valuation: 1.65) saw its substantial shareholder divest a 5% stake. A May 13 filing shows Deutsche Asia Pacific Holdings Pte Ltd paring its stake to 8.85% from 13.85% previously after selling 36.51 million shares on May 7. The shares were sold to Tokai Tokyo Financial Holdings Inc as part of a previous business cooperation agreement with Kenanga.

Deutsche Asia Pacific intends to eventually divest its entire stake in Kenanga, due in part to new capital market requirements for stakes held in financial institutions, a business daily quoted Kenanga group managing director Datuk Chay Wai Leong as saying on May 8.

Tan Sri William Cheng’s Lion Corp Bhd (fundamental: 0; valuation: 0) saw a large block of 200 million shares change hands on May 8. The seller was Graimpi Sdn Bhd, previously Lion Corp’s largest shareholder with a 24.75% stake, but which now has 9.5% equity interest. The buyer was another Cheng-controlled company, Lion Diversified Holdings Bhd, which has 646.86 million shares or a 49.14% stake following the transaction. A loss-making steel product manufacturer with RM690 million net liabilities, Lion Corp slipped into PN17 status in late 2013 and has been trying to regularise its business since then.

Over at StemLife Bhd, Citigroup Global Markets Ltd UK emerged as a substantial shareholder, according to a May 13 filing, after acquiring a 6.42% stake or 15.51 million shares in the stem cell banking firm on the open market.

StemLife (fundamental: 1.95; valuation: 0.90) posted a net loss of RM1.8 million from revenue of RM17 million in its latest financial year. Apart from Citigroup Global Markets, other prominent shareholders include Tan Sri Vincent Tan’s Berjaya Corp Bhd (fundamental: 0.90; valuation: 2.0) and Singapore’s Cordlife Group Ltd (fundamental: 1.70; valuation: 1.50) with 31.82% and 10.62% equity interest respectively.

Notable movements

According to a May 14 filing, Sersol Bhd (fundamental: 0; valuation: 0.95) saw Malaysian Capital Management Sdn Bhd emerge as a substantial shareholder after the latter bought 19.53 million shares via a private placement, translating into a 9.09% stake in the paint and coating manufacturer.

The placement was priced at 25 sen apiece or RM4.88 million in total. At its 41 sen close on May 19, the stake was worth just over RM8 million. In previous filings, Sersol said the placement was made to boost working capital and repay borrowings.

Another notable movement was seen at Inari Amertron Bhd (fundamental: 3.0; valuation: 1.50) where Kumpulan Wang Persaraan (Diperbadankan) upped its stake to 5.82% after purchasing 1.44 million shares between May 8 and 11.

A separate May 11 filing shows the Employees Provident Fund selling 314,000 shares on May 8, possibly to capitalise on Inari’s recent gains.

Nonetheless, subsequent filings show the EPF buying 764,600 shares on May 15, raising its holding to 5.51%. Closing at RM3.49 on May 19, Inari’s shares have gained 51% year to date.

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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. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.

This article first appeared in Capital, The Edge Malaysia Weekly, on May 25 - 31, 2015.