This article first appeared in The Edge Malaysia Weekly on July 6, 2020 - July 12, 2020

Notable filings

BETWEEN June 22 and 26, notable shareholding changes in companies listed on Bursa Malaysia included that at MQ Technology Bhd, which saw the emergence of Jacqueline Lee Fei Fei as its new substantial shareholder after she acquired 41.12 million shares, or a 5.82% stake, on June 23 through a private placement exercise.

At the same time, Heng Yong Kang @ Wang Yong Kang ceased to be its substantial shareholder, as he disposed of his entire 5.66% stake, or 40 million shares, on June 22 on the open market.

This comes after MQ Technology expressed interest to acquire Latexx Partners from Semperit Group. Top Glove Corp Bhd is said to be another front runner in the purchase.

MQ Technology, whose core business is in high-precision moulds and magnetic coils for hard disk drives, has been loss-making for the past five years. It posted a wider net loss of RM7.48 million for the financial year ended Dec 31, 2019, from RM5.22 million a year ago.

At PRG Holdings Bhd, Kho Sau Hong ceased to be a substantial shareholder after selling 35.44 million shares, or an 8.48% stake, to Liveintent Sdn Bhd.

PRG’s net loss narrowed to RM1.57 million for the first quarter ended March 31, 2020 against RM4.13 million in losses in the same period a year ago, thanks to higher revenue contribution from its manufacturing and property and construction segments.

Glove manufacturer Rubberex Corp (M) Bhd saw shareholding changes during the period under review. Seng Sheng Enterprise Sdn Bhd sold 24.6 million shares, ceasing to be its substantial shareholder.

Datuk Seri Chiau Beng Teik disposed of 22.65 million shares, reducing his direct and indirect stakes to 2.87% and 2.6% respectively.

In total, Seng Sheng Enterprise and Chiau sold a 20.63% stake to Hektar Global Bhd executive director Datuk Eddie Ong Choo Meng and his 90%-held Hektar Rubber Sdn Bhd at RM1.80 a share, which is a significant 38.4% discount to its last closing price of RM2.92.

With the deal, Ong and Hektar Rubber’s collective interest in Rubberex rose to 50.18%, triggering a mandatory general offer. Both are obliged to extend an MGO to acquire all the remaining shares in the company at RM1.80 apiece.

It is worth noting that Chiau recently surfaced as a substantial shareholder of Rubberex on May 15, with an equity interest of 13.63%, whereas Ong emerged as its new major shareholder on Feb 28, with a 26.68% direct stake, before raising it to 32.5% on April 16.

For its first quarter ended March 31, 2020, Rubberex posted a jump of 4.7 times in net earnings to RM9.26 million, from RM1.96 million a year ago.

Notable movements

Summit Synergy Ltd ceased to be Green Packet Bhd’s substantial shareholder, following the disposal of 100 million shares, or 9.99% equity interest, in the telecommunications and technology player on June 22.

Its founder and managing director/CEO Puan Chan Cheong acquired 20.59 million shares, however, raising his direct and indirect interest in the company to 12.28% and 16.9% respectively.

Green Packet had announced the acquisition of Singapore-based e-KYC (electronic Know Your Customer) specialist firm, Xendity Pte Ltd, for US$10 million (RM42.79 million).

It reported a net loss of RM34.07 million for the first quarter ended March 31, 2020, much wider than the RM13.88 million net loss a year earlier, as a result of higher costs and a fair-value adjustment on an investment during the period under review.

Green Packet’s share price fell 21% from 69 sen on June 19 to 54.4 sen on June 26.

Meanwhile, Liew See Kim ceased to be Komarkcorp Bhd’s substantial shareholder after divesting 1.1 million shares, or 5.36% equity interest.

Recently, the packaging machinery and self-adhesive label maker announced plans to venture into the face mask manufacturing segment.

Its shares have been rising since early June, hitting a recent peak of 41 sen, from 22.5 sen on June 1.

Komarkcorp remained in the red with a net loss of RM10.8 million for the financial year ended April 30, 2020, against RM9.85 million a year ago.

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