Insider Moves: Perwaja Holdings, Kinsteel, Boustead Holdings, Goldis, E&O, REDtone and Berjaya Corp

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NOTABLE filings

Between Dec 15 and 26, notable shareholding changes in companies listed on Bursa Malaysia included that at Perwaja Holdings Bhd.

In filings dated Dec 24 and 26, Perwaja said Kinsteel Bhd, its single largest shareholder, had disposed of more than 33.2 million shares or a 5.93% stake from Dec 19 to 24. Kinsteel, a listed midstream steel producer that is 31.63%-owned by Pahang tycoon Tan Sri Pheng Yin Huah, pared down its stake in Perwaja from 37.34% to 31.41%. On Dec 19, 11.5 million Perwaja shares were sold at 5 sen apiece, while on Dec 22, 20.2 million shares were done at 5.5 sen via married deals, just before Perwaja’s AGM on Dec 23. Another 1.06 million shares were sold at 5.7 apiece on the open market on Dec 24. Perwaja closed at 4.5 sen on Dec 30.

It is worth noting that this is the first time Kinsteel has disposed of Perwaja shares since the latter’s listing. To recap, Kinsteel took over 51% of Perwaja in 2006. On Aug 20, 2008, Perwaja went public at an initial public offering price of RM2.90. Kinsteel’s stake in Perwaja was diluted to 37.34% post-IPO. Perwaja shares have been languishing for years, with its market capitalisation shrivelling from RM722 million as at end-2009 to RM25.2 million last Tuesday.

The Edge Weekly reported last week that Perwaja opened the door for Pheng to join the big league, but the steel glut proved to be an overwhelming obstacle.
Perwaja’s steel mill in Kemaman, Terengganu, was shuttered in August 2013 as the ailing steelmaker could not pay its energy bills.

Over at Boustead Holdings Bhd, Lembaga Tabung Angkatan Tentera sold 24.698 million shares or a 2.38% stake from Dec 16 to 22, but remained the single largest shareholder with a 56.37% controlling stake. On Dec 15, Boustead announced a further extension to fulfill conditions precedent for the acquisition of an 80% stake in PFC Engineering Sdn Bhd for RM20 million in cash. According to theedgemarkets.com, the likelihood of a corporate exercise for Boustead is “high”.

Filings also show that Goldis Bhd is continuing to offload shares in IGB Real Estate Investment Trust. Between Dec 19 and 23, it sold 5.81 million units or a 0.17% stake in the REIT, paring its holdings from 51.87% to 51.7%. Earlier, on Dec 11 and 22, Goldis disposed of 31.95 million units or 0.92% of IGB REIT.

Notable movements

Closing at RM2.26 on Dec 30, shares of Eastern & Oriental Bhd (E&O) have eased over 23% from its recent peak in early September, but were still up about 37 sen or 19.6% year to date. Measured from its year-high July 16 close of RM3.21, the stock price is down 29.6% over five and a half months.

Filings show companies linked to E&O managing director Datuk Terry Tham Ka Hon dealing in the company’s shares. On Dec 26, Morning Crest Sdn Bhd acquired 15 million E&O shares, bringing its direct holding in the property firm to 6.75% or 75 million shares. The acquisitions were made through direct business transactions from Pusaka Setia Sdn Bhd and Tham, in two blocks of 11.37 million shares and 3.64 million shares respectively, at undisclosed prices. Tham’s direct stake stood at 3.8%, and indirect stake at 7.1% after the deal. His total holdings was unchanged as it is a “left pocket to right pocket” transaction.

REDtone International Bhd’s share price has fallen by 11.4% from its 52-week high of 83.5 sen on Sept 9. At its closing price of 74 sen on Dec 30, however, the counter is still up six sen or 8.82% year to date.

Filings show Berjaya Corp founder Tan Sri Vincent Tan Chee Yioun’s Juara Sejati Sdn Bhd continuing to acquire shares in the small-cap telecommunications service provider. On Dec 17, it bought 53 million shares or 10.19% at undisclosed prices via a married deal, a Dec 19 filing showed. According to stock market data, 53 million shares changed hands in direct deals at 70 sen apiece on Dec 17. Juara Sejati bought another 2.59 million shares on Dec 18, raising its holdings to 30.73%, of which 22.8% is held directly. As at Dec 23, its total shareholding stood at 30.74%.

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This article first appeared in The Edge Malaysia Weekly, on January 5-11, 2015.