Insider Moves: Vivocom International Holdings Bhd, Datasonic Group Bhd, Plastrade Technology Bhd, Kejuruteraan Asastera Bhd, Widad Group Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on January 13, 2020 - January 19, 2020.
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Notable filings

BETWEEN Dec 30, 2019 and Jan 3, 2020, notable changes in shareholding in companies listed on Bursa Malaysia included that at Vivocom International Holdings Bhd on Jan 3, with Datuk Seri Chia Kok Teong emerging as CEO and new substantial shareholder with a 23.04% stake.

Chia is likely to have bought most of the stake from Golden Oasis Resources Sdn Bhd, which Bursa filings show had disposed of 1.26 billion shares or 22.3% equity interest on the same day. Chia is the ultimate shareholder of Handy Goals Development Sdn Bhd, which Vivocom is partnering with in a property development project.

On Dec 30, the group announced that its subsidiary, Vivocom Enterprise Sdn Bhd, had entered into a joint venture development agreement (JVDA) with Handy Goals to develop and complete an ongoing residential development at The Mines, Seri Kembangan, Selangor. The JVDA does not include any issuance of shares from Vivocom to Handy Goals or its shareholders. However, due to Chia’s acquisition of the shares, the JVDA is now a related-party transaction.

Over at Datasonic Group Bhd, former managing director Datuk Abu Hanifah Noordin ceased to be a substantial shareholder on Dec 31, after disposing of 66.92 million shares or a 4.96% stake.

The shares were acquired by Datuk Razali Mohd Yusof, who first appeared in Datasonic after acquiring a 3.9% stake on Dec 18 last year, the same day Hanifah sold a 13.8% stake.

Datasonic deputy managing director Chew Ben Ben acquired 126.68 million shares on Dec 27, the same number of shares Hanifah disposed of via a direct business transaction on that day. As at Jan 6, Razali held a 11.4% stake in Datasonic, behind Chew, who has  27.98% equity interest.

On Jan 2, Plastrade Technology Bhd saw the emergence of a new substantial shareholder, after Choy Eng Lun acquired 21 million shares or an 11.27% stake in the manufacturer of polyethylene compound for wire and cable insulation and jacketing on Dec 31. The stake changed hands in a single direct deal at 5 sen apiece, a significant discount to the 10.5 sen the shares closed at on the open market on the same day. The shares were likely sold by Low Kar Yee, whom filings show sold 21 million shares on Dec 31 and ceased to be a substantial shareholder.

Plastrade is expected to see another new substantial shareholder as it is in the process of acquiring the assets and businesses of EA Comtronix Sdn Bhd for a purchase consideration of RM12 million. The consideration will be fulfilled by the issuance of shares and cash to EA Comtronix’s vendors.

 

Notable movements

During the week in review, Kejuruteraan Asastera Bhd’s (KAB) share price saw a 29.8% jump to RM1.09. This rally continued as at last Tuesday, with KAB trading at RM1.36 per share, giving it a market capitalisation of RM371.6 million.

A Jan 3 filing shows that its second largest shareholder, Faith Chow Poh Ten, had acquired 10.48 million shares or a 2.83% stake on Jan 2, increasing her shareholding to 16.04%. KAB announced on Jan 3 that it is diversifying into the solar power generation industry via the acquisition of a 30% stake in LeveragEdge Sdn Bhd for RM2.1 million.

Widad Group Bhd continued its ascent, with its share price adding 2.68% during the week in review to 57.5 sen. The construction firm closed at 61 sen last Tuesday, giving it a market capitalisation of RM1.5 billion.

On Dec 30, 2019, filings show its largest shareholder, Widad Business Group Sdn Bhd (WBG), disposing of 38 million shares, or a 1.55% stake on Dec 27. WBG has 57.4% equity interest in Widad Group.

Widad’s ultimate shareholder, Tan Sri Ikmal Opat Abdullah, acquired 3.4 million shares on Dec 31, increasing his direct stake to 2.74%, in addition to his deemed holdings via WBG.

 

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