Thursday 28 Mar 2024
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This article first appeared in The Edge Malaysia Weekly, on May 2 - 8, 2016.

Notable filings

BETWEEN April 18 and 22, changes in shareholding on Bursa Malaysia included that at Protasco Bhd. According to filings, Datuk Tey Por Yee ceased to be a substantial shareholder on March 28. He sold 1.9 million shares on March 24 and another block of 635,500 shares the next day, leaving him with just 16.9 million shares or a stake of just below 5%, filings show.

Tey, who first emerged as Protasco’s substantial shareholder in 2012, has also been divesting his stakes in other companies, including Nexgram Holdings Bhd. In January this year, Tey claimed trial to two charges in the Ampang Sessions Court — for fraud involving RM68 million and making a false declaration four years ago. He is accused of committing the offences at Protasco’s office in Kajang.

Elsewhere, Kumpulan Europlus Bhd disposed of 500 million shares in Talam Transform Bhd at 8.5 sen apiece on April 18 to Tan Sri Chan Ah Chye @ Chan Chong Yoon. The off-market transaction leaves Kumpulan Europlus with an 11.69% stake. Chan’s direct holding rose to 14.41% from 2.55% and he is also deemed interested in a 15.62% stake.

The transaction price is at a substantial 70% premium to the day’s closing price of 5 sen. But, the price tag was pre-determined in a supplemental agreement signed in October 2014 for the sale of 900 million Talam Transform shares by Kumpulan Europlus to Chan for RM99 million. Another tranche of 400 million Talam Transform shares is scheduled to be sold to Chan at 9.5 sen apiece.

Over at Y&G Corp Bhd, largest shareholder Kinta Aroma Sdn Bhd disposed of eight million shares or a 4% stake in the property developer on April 18. The shares crossed at RM1 apiece in a direct off-market deal, a 12% discount to the day’s closing price of RM1.14. Post-disposal, Kinta Aroma holds 119.9 million Y&G shares or a 60.14% stake.

 

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Notable movements

Timber products trader NWP Holdings Bhd was slapped with an unusual market activity query by Bursa on April 19. Usually untraded, NWP’s shares opened at 12.5 sen on April 18 to close more than two times higher at 26 sen on April 22 after active trading. On April 26, the stock had soared to an all-time high of 51.5 sen before falling to close at 49 sen. The company told Bursa that it was not aware of any corporate developments or other possible explanations that led to the sudden surge in its share price.

However, significant shareholding changes offer a clue. NWP’s second largest shareholder, Cashflow Budget Sdn Bhd, ceased to be a substantial shareholder after disposing of its entire 8.5% stake on the open market in two direct deals. On April 21, Cashflow Budget let go of 24.2 million NWP shares at 25 sen a piece, which was a sizeable 30% discount to the 32.5 sen apiece the stock was fetching on the open market. This was followed by the sale of its remaining three million shares on April 22, also at 25 sen each, a 32% discount to the 33 sen apiece the stock was fetching on the open market.

Cashflow Budget is a private vehicle owned by NWP’s CEO, Wong See Ming. After the disposal, Wong holds a 56.7% stake in NWP, half of which (50.1%) is held through a company called Sepang Heights Sdn Bhd.

Meanwhile, at LBS Bina Group Bhd, its largest shareholder Gaterich Sdn Bhd sold 18 million shares or a 3.2% stake on April 15 in a direct business transaction at RM1.55 apiece, a 2.5% discount to the open market price of RM1.59. This left Gaterich, a company linked to LBS Bina managing director Datuk Seri Lim Hock San, with a 50.44% stake.

The company’s share price has climbed 17.8% in the last three months. Recent developments at the property developer appear to have piqued investor interest. Two weeks ago, LBS Bina increased its stake in roof tile manufacturer-cum-contractor ML Global Bhd to 50.92% and offered to acquire the remaining 49.08% interest at 56 sen apiece and its warrants at 6 sen apiece. 

 

 

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