Insider Moves: IHH Healthcare Bhd, Mudajaya Group Bhd, My E.G. Services Bhd, Telekom Malaysia Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on December 10, 2018 - December 16, 2018.
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Notable filings

FROM Nov 26 to 30, notable filings on shareholding changes included a deal that will see Japan’s Mitsui Co & Ltd replacing Khazanah Nasional Bhd as the largest shareholder in IHH Healthcare Bhd. On Nov 28, Mitsui agreed to buy 1.4 billion shares or a 16% stake in IHH from a unit of Khazanah for RM8.42 billion or RM6 a share, raising its holding to 32.9%. Khazanah’s stake will be reduced to 26.1%. The expected holdings are counted based on IHH’s enlarged share capital once IHH’s acquisition of 30% equity interest in Acibadem Saglik Yatirimlari Holdings A.S is completed. The transaction, which forms an important part of Khazanah’s portfolio restructuring, is subject to regulatory approvals and the completion of the Acibadem acquisition.

The agreed price of RM6 a share was a 14.3% premium to its closing price of RM5.25 on Nov 28. IHH shares hit a high of RM5.50 on Nov 29 before moderating to close at RM5.41 on Dec 5, down 3.06% from a year ago.

At Complete Logistic Services Bhd, the Law family, led by founder and managing director Law Hee Ling, further increased its control of the company. His total direct and deemed holdings rose from 50.2% to 56.3% on Nov 28 after his son, Leon Law Li Yion, bought Mesti Juara Sdn Bhd’s entire 6.12% stake (7.56 million shares). The shares changed hands at 78 sen a share on Nov 28, a 19% premium to the 65.5 sen the shares were fetching on the open market and one sen above the highest level the stock had closed at year to date. Closing at 69.5 sen last Wednesday, the stock had gained 10.3% from the 63 sen closing price on Nov 28.

Filings show that Mulpha International Bhd holds a 15.31% direct stake in Mudajaya Group Bhd after acquiring the 90.3 million shares previously held under its wholly-owned subsidiary, Mulpha Infrastructure Holdings Sdn Bhd. Data shows 90.3 million shares changed hands in a single direct deal at 35.5 sen on Nov 22, 2.9% above the prevailing market price of 34.5 sen.

Recall that Mulpha International had proposed to distribute up to 90.3 million shares in Mudajaya to its shareholders as dividend-in-specie as the group looks to streamline its business and sell non-core investments.

 

Notable movements

My E.G. Services Bhd, whose shares have come under heavy selling pressure this year, retraced some losses in recent weeks. Co-founder and managing director Wong Thean Soon’s accumulating of shares is lending some support to the share price of the government e-services provider.

Closing at RM1.21 last Wednesday, My E.G. shares had risen 15.2% from RM1.05 on Nov 29. The gain was in contrast to the sharp decline seen across regional stock markets. The company’s own share buyback activities may have also lent some support. Over the period in review, about eight million shares were acquired.

Some support may have appeared at Telekom Malaysia Bhd, which has lost 60% of its market capitalisation this year as investors saw increased regulatory risks and tougher operating conditions.

Filings show the Employees Provident Fund, which had been selling the shares, was a buyer between Nov 23 and 30, adding 16.9 million shares or a 0.45% stake to raise its holding to 603.61 million shares or 16.06% on Nov 30, from 15.61% on Nov 22.

Closing at RM2.54 last Wednesday, the counter had gained 9% from Nov 23’s closing price of RM2.33.

On Nov 26, Telekom revised its dividend policy to between 40% and 60% of its profit after tax and non-controlling interest, down from its previous policy of paying out at least RM700 million or up to 90% of its annual earnings.

 

 

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