KUALA LUMPUR (Dec 16): Kumpulan Kenderaan Malaysia Bhd (KKM) has ceased to be a substantial shareholder of Konsortium Transnasional Bhd, after selling 20 million shares, which is equivalent to a 4.96% stake, in the bus operator.

The shares were sold on Monday (Dec 14), according to Konsortium Transnasional's stock exchange filing. However, Konsortium Transnasional did not disclose the transaction price. The company's share price settled at 17 sen on Dec 14, which would value the lot it sold at an estimated RM3.4 million.

Post-divestment, KKM is left with 9.31 million shares or 2.31% in Konsortium Transnasional. KKM emerged as Konsortium Transnasional's substantial shareholder on Sept 25, 2003, after buying 13.8 million shares or an 18.9% stake in the company. This stake was subsequently raised to 29.45% in June 2015, before it was trimmed.

Konsortium Transnasional slipped into Practice Note 17 (PN17) status in April this year, after its auditors highlighted a material uncertainty in the company’s ability to continue as a going concern in its audited financial statements for the financial year ended Dec 31, 2018 (FY18).

The group reported a net profit of RM15.64 million in its third quarter ended Sept 30, 2020 (3QFY20), against a net loss of RM13.75 million in the immediate preceding quarter (2QFY20), when the group was affected by movement restrictions imposed to curb the spread of Covid-19. Revenue rose to RM3.64 million from RM1.20 million.

Compared to a year ago, the group has returned to black from a net loss of RM7.54 million in 3QFY19, though its latest quarterly revenue is much lower than the RM29.49 million it recorded then. The improved profitability was due to a waiver of advances amounting to RM42 million that was granted by its ultimate holding company, Nadi Corp Sdn Bhd.

Konsortium Transnasional shares, which was trading at an average of four sen apiece in mid-August, spiked to as high as 25 sen in late November. Since then, the stock has declined. At the time of writing, the stock was unchanged at 16.5 sen, giving it a market capitalisation of RM66.46 million, with some 3.6 million shares traded.

Nevertheless, the stock is up 65% from when it was at 10 sen on Jan 2 this year.