Insider Moves: Urusharta Jamaah Sdn Bhd, Progressive Impact Corp Bhd, YLI Holdings Bhd, CB Industrial Product Holdings Bhd, Econpile Holdings Bhd, Rubberex Corp (M) Bhd, Chin Hin Group Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on June 1, 2020 - June 07, 2020.
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Notable filings

NOTABLE filing of shareholding changes between May 18 and 21 include the cessation of Urusharta Jamaah Sdn Bhd (UJ) — the special-purpose vehicle set up in late 2018 under the Ministry of Finance (MoF) to manage Lembaga Tabung Haji’s underperforming assets — as a substantial shareholder in two more companies, following recent share disposals.

UJ was no longer a substantial shareholder of Progressive Impact Corp Bhd and YLI Holdings Bhd after disposing of 4.88 million shares on May 13 and 765,400 shares on May 15. UJ still had a 7.27% stake, or 47.68 million shares, as the second-largest shareholder in Progressive Impact as at May 4, according to its 2019 annual report. UJ had a 9.06% stake, or 9.31 million YLI shares, as at March 2 before selling began on April 27. When it took over on Dec 28, 2018, UJ had a 9.906% interest in Progressive Impact and a 9.056% stake in YLI.

CB Industrial Product Holdings Bhd managing director Datuk Lim Chai Beng is no longer a substantial shareholder of Success Transformer Corp Bhd after his shareholding fell below the 5% threshold, following the sale of 600,000 shares on May 15. Lim, who emerged as a substantial shareholder of Success Transformer with a 5.22% stake, or 12.23 million shares, on March 1, 2019, still had 11.87 million shares, or a 5.16% stake, on May 13.

Meanwhile, filings dated May 20 showed that the Employees Provident Fund emerged as a substantial shareholder of Econpile Holdings Bhd with a 5.04% stake after buying 604,400 shares on April 21. The fund also owned 5.005% of Muhibbah Engineering (M) Bhd after acquiring 700,000 shares on March 26.

 

Notable movements

Niche glovemaker Rubberex Corp (M) Bhd, which welcomed new substantial shareholders over the past three months, is seeing strong share price performance after its recent private placement, alongside the general market uptick.

Rubberex closed at RM2.36 on May 27, up 92% from the RM1.23 that the placement shares were sold at barely a month ago. The placement, which was priced at a 10% discount to the five-day volume-weighted average market price of RM1.36 as at April 30, raised RM31 million. The company will use the proceeds to expand its nitrile glove production to 2.5 billion pieces a year from one billion pieces. Rubberex closed at RM1.90 when the 25.2 million placement shares were listed on May 18.

The entire placement of 25.2 million shares was bought by Datuk Seri Chiau Beng Teik, the major shareholder and deputy group executive chairman of building material company Chin Hin Group Bhd. Chiau emerged as a new substantial shareholder, with an 11.04% direct stake, or 30.62 million shares, on May 15. He also holds a 2.6% stake in Rubberex indirectly via Divine Inventions Sdn Bhd.

Rubberex shares had closed at 86 sen on March 6, when filings showed the emergence of a new major shareholder — Datuk Ong Choo Meng, executive director of agrochemicals maker Hextar Global Bhd. He had a 26.69% stake, or 67.3 million shares, as at Feb 28 (when the shares closed at 73 sen, valuing the stake at RM49.13 million). Ong, who bought the shares from Med-Bumikar Mara Sdn Bhd, transferred the stake to Erpstar Inc Sdn Bhd on April 10.

US-based Caravan Capital Management LLC also emerged as a substantial shareholder in Rubberex on April 16 with a 5.2% indirect stake. Alor Setar-based Seng Sheng Enterprise Sdn Bhd held 24.6 million shares, or a 9.75% direct stake, after buying 12.6 million shares on May 5 via a direct business transaction, filings show.

At the time of writing, a stock exchange filing dated May 21 showed Chiau having the intention to deal in his 24.39% direct and 40.1% indirect stake in Chin Hin during the closed period in the run-up to its first-quarter results ended March 31. His son Haw Choon, Chin Hin’s managing director, is also deemed interested in the 40.1% while directly holding a 1.97% stake.

Chin Hin closed at 63 sen on May 27, up 16.7% from 54 sen as at end-April and 37% from its recent low of 46 sen on March 18.

 

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