Off-Market Trades: Multi Sports Holdings, NCB Holdings, MMC Corp, MISC, Gopeng and EcoFirst Consolidated

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A total of 894.75 million shares and warrants valued at RM743.21 million were traded off market in blocks of 450,000 units and above, between Nov 26 and Dec 2.

Notable movements during the period include those at Multi Sports Holdings Ltd, which saw 91.44 million warrants change hands between Nov 26 and Dec 1. The largest block was the 88.06 million warrants transacted in a direct deal at 3.5 sen apiece on Nov 26, a discount to the prevailing market price of four sen. The block is sizeable relative to its existing share base of 517.5 million.

The seller is likely the footwear design and manufacturing company’s executive chairman-cum-CEO Lin HuoZhi, whom filings show disposed of 88.06 million warrants at 3.5 sen apiece on that day.

The disposal came before the resignation of chief financial officer Lim Kim Huat on Dec 1. Lim was appointed on May 1 this year.

During the same period, Multi Sports Holdings announced its financial results, which saw it return to the black with a net profit of RM7.75 million for its third quarter ended Sept 30, 2014. It posted a net loss of RM7.87 million a year ago.

The company attributed the improvement to lower start-up expenses incurred by its fashion apparel and accessory division.

Its revenue increased marginally to RM99.77 million from RM94.25 million, which was due to the commencement of the fashion apparel and accessory division in the fourth quarter of 2013.

Over at NCB Holdings Bhd, the port operator saw 73.99 million of its shares or a 15.73% stake traded off market at RM3 apiece, or RM221.97 million in total, on Nov 27.

Filings with Bursa show that Tan Sri Syed Mokhtar Albukhary’s flagship MMC Corp Bhd acquired the stake from MISC Bhd.

MMC Corp said the acquisition is in line with the company’s initiative to make strategic investments in its core business, such as ports and logistics, to strengthen the group’s financial position. The deal was done through its unit, MMC Ventures Sdn Bhd.

Meanwhile, Gopeng Bhd saw 18.36 million of its shares or a 10.24% stake change hands on Nov 27. The off-market direct deal was done at 81 sen apiece, or RM14.87 million in total.

At the time of writing, there were no announcements as to who the parties involved in the deal were, but it is understood that Datuk Mohamad Hamdan Hazizi, the company’s fourth largest shareholder who disposed of 200,000 shares on Nov 5, has been paring down his holding in Gopeng.

Prior to this transaction, Gopeng released its financial results, which show a net profit of RM888,000 for the third quarter ended Sept 20, 2014, compared with RM154,000 previously. Revenue, however, was lower at RM2.65 million, compared with RM3.02 million a year ago.

Notes accompanying its results reveal that a sale of leasehold land resulted in higher other incomes, compared with the previous corresponding period.
Gopeng is involved in oil palm cultivation and property development.

Meanwhile, EcoFirst Consolidated Bhd saw shares and warrants change hands off market at a discount to market prices, between Nov 27 and Dec 1.
The larger block was the 34 million warrants done at 14.5 sen apiece on Nov 28, a discount to the market price of 17.5 sen.

On Dec 1, some 20 million shares changed hands in a direct deal at 20 sen apiece. The stock was going for 31 sen on the market at the time.

Filings show that the group’s chief executive director Datuk Tiong Kwing Hee bought 20 million EcoFirst shares at 20 sen apiece on Dec 1, raising his direct interest to 8.31% from 5.57%.

This article first appeared in The Edge Malaysia Weekly, on December 8-14, 2014.