Off-Market Trades: Lien Hoe Corp, iDimension Consolidated, Ni Hsin Resources, YSP Southeast Asia Holding and Jaks Resources

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SOME 430.66 million shares worth RM504.25 million were traded in blocks of at least 450,000 between Nov 12 and 18. Chief among the transactions was a direct deal of 27 million shares or a 7.87% stake in Lien Hoe Corp Bhd on Nov 14. The deal was valued at RM8.1 million or 30 sen apiece, which was at a 10.45% or 3.5 sen discount to the closing price of the construction outfit and owner of Armada Petaling Jaya hotel that day. Lien Hoe’s latest book value is 77 sen per share.

It was revealed last Wednesday that substantial shareholder Lim Wan Sing sold all his 27.47 million shares in Lien Hoe, with the bulk picked up by Belastra Sdn Bhd.

Lim has been trimming his stake in Lien Hoe since early September — the company’s annual report for the financial year ended Dec 31, 2013, showed he had a 9.31% direct interest.

Lien Hoe’s net loss widened to RM3.87 million in 1HFY2014 from RM759,000 in the previous corresponding period, while revenue was 5.37% lower at RM69.29 million. Nevertheless, the company is sanguine about its prospects, thanks to new construction jobs and “promising growth in the hotel business” as stated in the financial notes accompanying its 2QFY2014 results.

Meanwhile, a 5.88% stake in ACE Market-listed iDimension Consolidated Bhd was crossed at RM2.5 million or 10 sen apiece. This off-market transaction occurred on Nov 17, when the enterprise software provider closed at 10.5 sen.

iDimension has lost 25% of its market value since the end of last year. Last Wednesday, it reported that substantial shareholder EClub Interactive Sdn Bhd had sold 2.33 million shares on Nov 17 to reduce its stake to below 5%.

EClub had in October bought one million iDimension shares, raising its holding to 21 million shares or a 5.32% stake. In the same month, Singapore-based Advanced Capital Partners Pte Ltd surfaced as a substantial shareholder in iDimension, but this was only for a week because it disposed of two-thirds of some 30 million iDimension shares that it had purchased on Oct 24.

Ni Hsin Resources Bhd, the subject of a backdoor listing for an oil and gas exploration company, saw its chairman Hsiao Chih Jen sell a total of 11.83 million shares or a 5.12% stake in the steel cookware maker. The transaction was done on Nov 13 and officially announced on the same day.

At the time of writing, Hsiao holds a 5.55% direct and indirect stake in Ni Hsin. By comparison, his direct stake was 10% and indirect stake 2.14% on March 31.
On Nov 12, some 3.4 million YSP Southeast Asia Holding Bhd shares, equivalent to 2.56% equity interest in the pharmaceutical player, were crossed at RM1.474 apiece. The stock closed at RM1.48 that day.

YSP reached an all-time high of RM1.74 in August this year, but started to decline following disappointing results in its second quarter ended June 30 (2QFY2014). Nonetheless, Lembaga Tabung Haji has been accumulating the shares and has raised its holding to 10% from 8.19% on Oct 21.

Pipe maker Jaks Resources Bhd saw a total of nine million shares or a 2.06% stake cross off market on Nov 12. Half of the shares were transacted at 60.5 sen each, and the other half at 59.5 sen apiece.

The stock closed at 60 sen that day, its lowest in about five months. It had ended at 83 sen in July, as it was deemed one of the beneficiaries of the construction of the Langat 2 water treatment plant and distribution network.

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This article first appeared in The Edge Malaysia Weekly, on November 24-30, 2014.