Insider Moves: Cypark Resources Bhd, Microlink Solutions Bhd, Omesti Bhd, MyEG Services Bhd, Edaran Bhd, Far East Holdings Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on August 27, 2018 - September 02, 2018.
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Notable filings

FROM Aug 13 to 17, notable shareholding changes in companies listed on Bursa Malaysia included that at Cypark Resources Bhd. Its executive chairman, Tan Sri Razali Ismail, has been trimming his holding in the Main Market-listed renewable energy and green technology group. He sold 7.43 million shares or a 2.48% stake over the five-day period for a total of RM17.46 million.

Razali went on to sell an additional 674,000 shares for RM1.61 million on Aug 20, according to a stock exchange filing the next day. This brought down his direct stake in Cypark to 13.21% or 39.59 million shares. There were no reasons provided for the selldown.

Razali, who remains Cypark’s second largest shareholder after group CEO Datuk Daud Ahmad (16.66%), had held as much as 17.7% equity interest two months ago after accepting his entitlement under a dividend reinvestment scheme.

For the six months ended April 30, the company reported a 35.1% rise in net profit to RM31.01 million, on the back of a 12.7% increase in revenue to RM183.1 million.

In May, Cypark had proposed a private placement of up to 10% of its issued shares to raise as much as RM64.37 million, which would be used as working capital to set up a large-scale solar photovoltaic plant. The fundraising exercise is expected to be completed in the final quarter of this year.

Over at Microlink Solutions Bhd, executive director Monteiro Gerard Clair is continuing to accumulate shares in the company. He acquired 1,000 shares at 40.5 sen apiece on Aug 14, and 115,000 shares at 36.59 sen apiece on Aug 16. On Aug 20, he bought 31,000 shares at 38.69 each, raising his direct stake in the company to 2.36% or 3.96 million shares.

He has also raised his holding in the company’s controlling shareholder, Omesti Bhd. From Aug 15 to 17, he bought 822,400 shares, which lifted his direct stake to 3.95% or 15.05 million shares. Indirectly, he has 14.89% equity interest in Omesti, where he is also an executive director.

Both Omesti and Microlink Solutions were lossmaking as at their last financial year ended March 31 this year.

At MyEG Services Bhd, its biggest shareholder Asia Internet Holdings Sdn Bhd disposed of 50 million shares or a 1.41% stake via a married deal on Aug 16. The buyer is yet unknown.

Following the sale, group managing director Wong Thean Soon now has a 30.8% stake in MyEG through his vehicle, Asia Internet Holdings, and 8.64% directly in his name.


Notable movements

Edaran Bhd, an IT services management company, saw a 57% jump in its share price to 71.5 sen on Aug 13, giving it a market capitalisation of RM41.4 million. Some 47.36 million shares changed hands that day, a 28-fold increase over the previous trading day.

Just one trading day earlier, on Aug 10, Ng Hong Ming bought 3.3 million Edaran shares on the open market, becoming a substantial shareholder with a 5.7% stake. The counter has since stayed above the 70-sen level, peaking at 77 sen on Aug 21 — its highest close in over four months.

Edaran, which was queried by Bursa Malaysia for the unusual activity in its share price and volume, told the regulator on Aug 14 that it was not aware of any corporate development that may have accounted for the recent movements. The group reported a net profit of RM3.92 million for the nine months to March 31, turning around from a loss of RM875,000 in the same period a year ago.

Meanwhile, plantations group Far East Holdings Bhd has seen relatively strong trading volumes of above the 100,000 level since Aug 8. Its executive director of plantations Tee Cheng Hua ceased to be a shareholder on Aug 15 after selling 25,000 shares. That day, the stock closed at RM3.40, just off its 52-week high of RM3.448 on Aug 9, giving it a market capitalisation of RM2.02 billion.


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