Off-Market Trades

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FROM March 11 to 17, a total of 385.38 million shares valued at RM570.95 million were traded off market in blocks of at least 500,000 shares.

Among the companies that saw notable trades was REDtone International Bhd (fundamental: 2.30; valuation: 0.30). On March 16, an 11.21% stake in the telecommunication service firm was traded off market. The 74.61 million shares changed hands at 80 sen apiece or RM59.69 million in total through direct deals.

According to a filing dated 
March 16, Sultan of Johor Sultan Ibrahim Sultan Iskandar raised his stake to 20% from 4.8% after converting his warrants into stocks and buying shares on the open market.

Sultan Ibrahim has been accumulating shares in REDtone in the past year, the company said in a press statement dated March 16.

It is worth noting that Sultan Ibrahim acquired the 74.61 million shares from REDtone chairman and non-independent non-executive director Datuk Seri Syed Ali Syed Abbas Alhabshee, who holds a 10.53% stake in the company after the disposal.

Apart from Sultan Ibrahim, Tan Sri Vincent Tan Chee Yioun has also been acquiring shares in the company through a private vehicle named Juara Sejati Sdn Bhd, announcements to Bursa Malaysia reveal.

Tan bought an additional six million shares on the open market on March 12. He now holds a direct stake of 28.29% compared with 13.84% in Nov 6 last year.

Over at Raya International Bhd (fundamental: 0.35; valuation: 0), 
5.5 million shares or a 4.22% stake worth RM880,000 was traded off market on March 17.

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As at press time, there were no news of who the transacting parties were.

Meanwhile, PUC Founder (MSC) Bhd (fundamental: 2.25; valuation: 1.80) saw 43.3 million shares or 4.07% equity interest worth RM6.1 million trade off market on March 11 and 17.

According to an announcement dated March 13, PUC Founder said its group managing director, Cheong Chia Chieh, had disposed of 42.8 million shares or a 4.03% stake on the open market. Following the disposal, Cheong holds 51.11% equity interest in the IT solutions and electronic publishing company.

The ACE Market-listed company disclosed in a filing dated March 17 that it is venturing into the solar energy business to bring in a steady revenue stream for the diversified group.

Cheong said its subsidiary, MaxGreen Energy Sdn Bhd, was selected as a feed-in tariff (FiT) approval holder by Sustainable Energy Development Authority Malaysia. The venture will involve the supply of electricity to Tenaga Nasional Bhd.

According to Cheong, a solar photovoltaic plant will be set up in Sungai Petani, Kedah, with a land area of 2.5 acres.

Over at LBI Capital Bhd (fundamental: 1.70; valuation: 3.00), 
4.55 million shares or a 6.22% stake worth RM5.32 million were traded off market on March 11 and 17. Filings on March 17 show that 2.3 million shares of RM1.17 each were traded through a married deal between acquirer Ng CH Holdings Sdn Bhd and seller Ng Tiong Seng Corp Sdn Bhd.

LBI Capital and its subsidiaries are engaged in property development and rubber moulded products manufacturing.

A separate announcement on the same day disclosed that the company’s directors, Datuk Ng Chin Heng, Datin Low Wee Chin and Raymond Ng Yew Foong, had acquired 20,000 shares at RM1.29 and RM1.30 apiece. Together, they own 58.37% equity interest in the company.

Poultry producer Teo Seng Capital Bhd (fundamental: 1.90; valuation: 2.10) saw eight million shares or a 2.67% stake trade off market on March 12. The shares were traded at RM1.90 apiece through direct deals.

Teo Seng said in an announcement on March 17 that Koperasi Permodalan Felda Malaysia Bhd had acquired one million shares on March 12, without disclosing the transacted price. Following the acquisition, Felda holds a 5.33% stake or 16 million shares in the company.

Tan Sri Halim Saad’s Sumatec Resources Bhd (fundamental: 2.40; valuation: 0.30) saw a 1.91% stake or 
66.5 million shares change hands through off-market transactions on March 12 and 13. The shares were traded in block trades and direct deals at 19 sen, 20.5 sen and 21 sen apiece, amounting to RM13.34 million.

Prior to the company’s extraordinary general meeting scheduled for April 8, Halim bought an additional 46 million shares at 20.5 sen each on March 13, according to an announcement dated March 16.

Following the purchase, his stake increased to 24.49% or 853.04 million shares.

Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.

This article first appeared in The Edge Malaysia Weekly, on 23 March, 2015.