KUALA LUMPUR (Jan 12): Tan Sri Lee Kim Yew, Datuk Seri Tan Choon Hwa and Datuk Justin Lim Hwa Tat have ceased to be substantial shareholders of SMTrack Bhd, the company notified on Wednesday (Jan 12).

This comes as their shareholdings were diluted after an enlargement of the company’s share capital arising from the conversion of redeemable convertible notes.

Lee, who is the founder and executive chairman of Country Heights Holdings Bhd, had surfaced as a substantial shareholder of SMTrack on Dec 29, 2021, after acquiring 28.5 million shares or a 5.05% stake on the open market.

On Jan 6, Tan also surfaced as the radio frequency identification solutions company’s new substantial shareholder, after raising his stake to 5.4% from 3.16% previously.

On Jan 7, Lim, who is managing director of Sersol Bhd, also emerged as SMTrack’s new major shareholder after acquiring 29 million shares or 5.14% stake via an open market transaction.

On the same day, SMTrack appointed Lim as its executive director, and Tan as its non-independent and non-executive director.

The shareholding changes and the new appointment came amid news that a government-linked company (GLC) is eyeing a 10% stake in SMTrack.

In confirming the news, SMTrack said on Jan 6 that it is in early negotiations with a GLC, “of which no agreement has been reached at this juncture”.

This week’s edition of The Edge Malaysia weekly, meanwhile, reported that something big could happen as a signing ceremony — between SMTrack, Country Heights, Jiankun International Bhd, Sersol Bhd, AHB Holdings Bhd, Techna-X Bhd, MQ Technology Bhd and 5G Infratech Malaysia Sdn Bhd — is scheduled to be held on Jan 13 (Thursday).

On Jan 10, SMTrack clarified that the company is in an early stage of discussion with these companies and no agreement has been reached yet.

SMTrack, which was the most actively traded stock on Wednesday, saw 110.6 million shares traded.

The counter closed unchanged at 30 sen, valuing the group at RM191.75 million. It has risen 87.5% from 16 sen since Dec 29, 2020, when Lee emerged as its shareholder.