Friday 29 Mar 2024
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This article first appeared in Capital, The Edge Malaysia Weekly on June 7, 2021 - June 13, 2021

Notable filings

BETWEEN May 24 and 28, notable shareholding changes in companies listed on Bursa Malaysia included the emergence of Jakel Group managing director Datuk Mohamed Faroz Mohamed Jakel as a substantial shareholder of Sedania Innovator Bhd with a 12.55% stake on May 25 following a private placement.

The 43.5334 million shares he bought were part of Sedania’s plan announced last September to place out a stake of up to 20%, or 58 million shares. The placement price was fixed at 28.6 sen on May 20, a 9.89% discount to the five-day volume-weighted average market price of 31.74 sen between May 11 and 19.

Filings show Mohamed Faroz bought another 810,000 shares from the open market at undisclosed prices on June 1, raising holdings to 12.77%. Sedania closed at 97 sen on June 1 and RM1.13 on June 2, giving it a market capitalisation of RM402.7 million.

Over at UWC Bhd, stock exchange filings show the Employees’ Provident Fund (EPF) ceased to be a substantial shareholder after the fund sold 2.46 million shares on May 27 only to re-emerge as a substantial shareholder on May 28 after buying 236,100 shares to lift its holdings over the 5% threshold for substantial shareholding. The EPF had a 5.37% stake, or 59 million shares, as at May 17 before it began taking some profit on its holdings. Its share price was still up 12% year to date as it closed at RM5.48 on June 2, though a third below its 52-week high of RM7.35 in February.

Notable movements

Closing at 82.5 sen last Wednesday (June 2), shares in Serba Dinamik Holdings Bhd have plummeted 48% since the oil and gas services company announced on May 25 that its external auditor KPMG had informed the board “on some matters” pertaining to its statutory audit. The board was in the midst of commissioning a special independent review to assess the veracity and accuracy of the matters raised by KPMG pertaining to sales transactions, receivables and payables totalling over RM3 billion.

On May 28, its second-largest shareholder and non-executive director Datuk Abdul Kadier Sahib — who is also a member of the audit and risk committee — requested an extraordinary general meeting (EGM) to replace KPMG with BDO, a notice which was subsequently withdrawn on June 2.

While the reason for the withdrawal was not known at the time of writing, at least two key institutional shareholders had expressed concern over the episode. The EPF told theedgemarkets.com it was engaging with Serba Dinamik over the issue to safeguard members’ interest while Permodalan Nasional Bhd (PNB) told Reuters there was no merit in removing KPMG before completion of the annual audit and it reserved its right to vote against any resolution to replace the current auditor. The EPF had 377.7 million shares or a 10.182% stake in Serba Dinamik as at May 25 while PNB and its unit Amanah Saham Nasional Bhd had a stake of more than 5% as at April 30, 2020, according to Serba Dinamik’s 2019 annual report.

Separate filings show Kumpulan Wang Persaraan (KWAP) trimming its holdings to 4.53% after selling 26.032 million shares, or a 0.7% stake, on June 1. Serba Dinamik’s two largest shareholders, however, bought shares. Group managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah and Abdul Kadier each bought five million shares, or a 0.135% stake, raising their holdings to 27.066% and 16.09% respectively. Abdul Karim paid RM1.13 apiece for the shares on May 31 while Abdul Kadier paid 88.4 sen each for the shares on June 2.

Shares in Muhibbah Engineering (M) Bhd inched 12% higher over seven market days as it closed at RM1 on June 2, retracing some of its earlier losses.

A May 28 filing shows the emergence of fund managers Fidelity Funds as a substantial shareholder of Muhibbah with 32.97 million shares, or a 6.82% stake, after the purchase of 8.88 million shares on May 17. That 6.82% stake is part of the 8.76% holdings that FIL Asia Holdings Pte Ltd is deemed interested in via four parties.

 

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