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This article first appeared in Capital, The Edge Malaysia Weekly, on November 16 - 22, 2015.

 

Berjaya-Corp_Laweko-Resources_Cap64_TEM1084_theedgemarketsSome 414.24 million shares valued at RM361.31 million were traded off market in blocks of at least 400,000 shares from Nov 4 to 9.

Among the notable transactions were those at Tan Sri Vincent Tan Chee Yioun’s Berjaya Corp Bhd (BCorp), which saw a 1.1% stake or 50 million shares traded off market in two direct deals — a block of 10 million shares and another block of 40 million shares — on Nov 6. The buyer and seller were unknown at the time of writing. The BCorp (fundamental: 0.90; valuation: 1.80) shares changed hands at 40 sen apiece, below the closing price of 41 sen that day.

Over at leather product retailer MESB Bhd, the company saw 5.27 million of its shares or 12.55% equity interest traded off market in a direct deal at 77 sen apiece on Nov 5 — a 13% discount to what the stock would have fetched on the open market that day.

Filings show that CEO Teoh Hwa Peng had transferred the shares to his private vehicle, Angsana Inai Sdn Bhd, which had a 29.22% direct interest in MESB (fundamental: 1.85; valuation: 1.10) as at Nov 5. Teoh is MESB’s largest shareholder with 16.19% direct and 34.28% indirect equity interests, the latter through his private vehicles and his spouse Tan Sok Gim.

On Nov 4, gold jewellery and ornaments manufacturer Niche Capital Emas Holdings Bhd (fundamental: 0.75; valuation: 0) saw a 7.24% stake or 2.02 million of its shares change hands in a single direct deal.

At 9.5 sen apiece, the shares changed hands at a 9.5% discount to the 10.5 sen they were fetching on the open market at the time and a 17.4% discount to the counter’s closing price of 11.5 sen that day. It is worth noting that the transaction came hot on the heels of Niche Capital’s Oct 30 statement that its external auditors had issued a qualified opinion on the company’s financial statement for the period ended June 30, 2015.

Among other things, Messrs Baker Tilly Monteiro Heng said it found insufficient audit evidence on the assumptions made in the group’s cash flow forecasts, which included the recoverability of a RM4.64 million deposit intended for the procurement of a 38kg jadeite stone block meant to be processed for sale. The auditors also drew attention to the group’s RM21.48 million accumulated losses and negative operating cash flow of RM3.4 million.

Elsewhere, at Leweko Resources Bhd (fundamental: 0.55; valuation: 0.90), the wood-based products industry player saw 5.3 million shares or a 1.65% stake done off market in a direct trade last Monday. The shares crossed at 14 sen apiece, the same price it would have fetched on the open market. The seller is likely Abd Aziz Jantan, Leweko’s executive director, who has a 29.43% stake in the company after selling the same number of shares that day.

Meanwhile, Tiger Synergy Bhd (fundamental: 1.20; valuation: 0.90) saw five million shares change hands in two direct deals on Nov 4 — the same day the wood-based product manufacturer and property developer announced it would conduct a series of corporate exercises. The five million shares or 0.62% block crossed at 9 sen each — a 5% premium to the closing price of 8.5 sen. The company is proposing a capital reduction as well as a two-for-one rights issue of up to 2.4 billion shares.

RGB International Bhd (fundamental: 2.10; valuation: 1.80), which was one of Bursa Malaysia’s most actively traded stocks during the period under review, saw sizeable off-market trades between Nov 4 and 9. The gaming counter saw 15.71 million shares or a 1.2% stake change hands in multiple block trades off market at between 18 sen and 19.5 sen apiece. The transacting parties are unknown, but investor interest and an unrated local research note have helped pushed its share price upwards by 37% year to date.


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.

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