This article first appeared in The Edge Malaysia Weekly, on April 18 - 24, 2016.

Notable filings

BETWEEN April 4 and 8, notable shareholding changes included the emergence of Gryphon Asset Management Sdn Bhd as a new substantial shareholder in Omesti Bhd with a 5.03% stake on March 31.

In a filing with Bursa Malaysia, Omesti said the asset management company acquired 19.6 million shares in an off-market direct business transaction to become a substantial shareholder of the computer equipment and software distributor. The shares were sold by Insas Plaza Sdn Bhd at 33 sen apiece. As the ultimate shareholder of Gryphon Asset Management and Insas Plaza is Insas Bhd, there was no change in the latter’s 10.6% holding.

It is worth noting that Omesti was appointed in January to implement the second phase of the e-Courts system that is digitising court infrastructure. The RM31 million project is expected to boost Omesti’s earnings in its financial year ending March 31, 2017.

Another notable filing is the purchase of 25.25 million Hektar Real Estate Investment Trust units by Hektar Black Sdn Bhd on March 31, bringing its total holding to 25.15% and making it the REIT’s second largest shareholder. The units, representing a 6.3% stake in the firm, crossed at RM1.51 apiece, the same as what they would have fetched on the open market that day. Filings show the seller to be Hektar Premier Sdn Bhd, the REIT’s now third largest shareholder with a 14.94% stake.

This is the second off-market sale and purchase of units between the two in a week. On March 25, Hektar Black bought 25.25 million Hektar REIT units from Hektar Premier, also at RM1.51 a unit. These transactions have come as Hektar REIT’s units are trading near their record high of RM1.52. The units have soared, although the REIT’s net income plunged from RM50.4 million in FY2014 to RM4.8 million in FY2015 — a result of the revaluation of its properties.

Over at Sona Petroleum Bhd, its second largest shareholder, Credit Suisse Securities (Europe) Ltd, has upped its stake in the special purpose acquisition company (SPAC) to 13% as Sona prepares to convince its shareholders to vote in favour of purchasing a qualifying asset. The Swiss firm bought an additional 1.46 million Sona shares on the open market on April 4. Then, three days later on April 7, it bought another 747,900 shares. The transaction prices were not revealed.

Time is running out for Sona to convince its shareholders to approve the purchase of a 100% stake in Stag from Quadrant Northwest Pty Ltd and Santos Offshore Pty Ltd for US$25 million (RM98 million). On March 30, Sona adjourned its extraordinary general meeting at the last minute, claiming that its shareholders were unclear about the proposed capital repayment of up to RM80 million. To push the deal through, Sona needs the vote of 75% of its shareholders at the April 26 EGM.

Notable movements

Bumi Armada Bhd’s share price drifted to a record low of 71 sen during the week and has lost 30% of its value this year alone. Filings show the Employees Provident Fund (EPF) selling 10.1 million of the shares last week.

Interestingly, as Bumi Armada’s shares started to fall in June 2014, in the aftermath of the global crude oil price crash, the EPF raised its holding. In fact, its stake in Bumi Armada peaked in the first quarter of 2015. Currently, with over 450 million or 7.68% of Bumi Armada’s shares, the EPF is the company’s second largest shareholder. The largest shareholder is still Objektif Bersatu Sdn Bhd with a 34.92% stake.

Separately, filings show the EPF reduced its stake in plantation heavy­weight IOI Corp Bhd as its share price fell after its suspension from the Roundtable on Sustainable Palm Oil. The retirement fund bought and sold IOI Corp’s shares but its stake was down from 7.57% on April 4 to 7.45% as at April 8.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.