Off-Market Trades: REDtone, Borneo Oil, Mulpha Land, Takaso Resources, Scanwolf Corp, Freight Management Holdings and Signature International

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SOME 1.13 billion shares valued at RM122.3 million were traded off market in blocks of at least 500,000 units between Dec 15 and 22. Notable transactions included tycoon Tan Sri Vincent Tan upping his stake in REDtone International Bhd to 32.08% from 21.39% previously.

According to a Dec 17 announcement to Bursa Malaysia, 53 million REDtone shares were acquired by Juara Sejati Sdn Bhd through a married deal. Berjaya Corp Bhd, in which Tan holds a 48% stake, is the shareholder of Juara Sejati.

On Dec 9, REDtone announced that its subsidiary, REDtone Marketing Sdn Bhd, has received a letter of award from Malaysian Communications and Multimedia Commission to build, operate and maintain the radio access network infrastructure in rural Johor and Sarawak for RM88.57 million.

Meanwhile, Tan Sri Lau Cho Kun, the largest shareholder of Borneo Oil Bhd, disposed of 14.21 million shares, or a 4.26% stake, on Dec 18. Filings with Bursa show that Victoria Capital Sdn Bhd, which owned 14 million units of the disposed shares and could be linked to Lau, ceased to be a substantial shareholder in the oil and gas company, which also operates quick service restaurants.

Lau holds a 15.36% stake in Borneo Oil through his vehicle Hap Seng Insurance Services Sdn Bhd.

Mulpha Land Bhd saw Perfect Portal Sdn Bhd cease to be a substantial shareholder after disposing of 5.073 million shares, or a 2.22% stake, on Dec 15. Perfect Portal holds 7.51 million shares, or a 3.29% stake, after the disposal.

On Dec 17, Ong Kah Hoe, a shareholder of Dynavance Construction Sdn Bhd, which was acquired by Takaso Resources Bhd in October, acquired 5.72 million shares, or a 2.88% stake, in the condom and baby care accessories manufacturer.

Ong directly and indirectly holds a 20.9% stake in Takaso through OCR Land Holdings Sdn Bhd. Takaso acquired Dynavance, a general construction company, for a cash consideration of RM9.5 million. Ong first appeared as a substantial shareholder of Takaso on Nov 3.

Elsewhere, Datuk Loo Bin Keong disposed of 1.5 million shares, or a 1.8% stake, in Scanwolf Corp Bhd at 50 sen per share on Dec 22. According to the group’s 2014 annual report, Loo holds 31.7% of the home and office fittings manufacturer’s shares.

A total of 5.8 million shares, or a 3.4% stake, in Freight Management Holdings Bhd were transacted off market on Dec 19. At the time of writing, the freight service provider has not made any announcement to Bursa on the change of shareholdings.

During the period, Freight Management’s share price fell 5.88% to RM1.60. The group made a net profit of RM4.68 million in the first quarter ended Sept 30, 2014, 12.4% lower than the corresponding quarter’s earnings of RM5.34 million.

The company has recently entered into an agreement with China-based Amass Freight International Co Ltd to jointly set up a company within the Jebel Ali Free Trade Zone in the United Arab Emirates to provide logistics services.

Over at Signature International Bhd, 1.8 million shares, or a 1.5% stake, changed hands off market on Dec 22. In a filing with Bursa, the kitchen and wardrobe designer and manufacturer said HSC Healthcare Sdn Bhd disposed of two million shares in a direct deal.

Signature’s share price jumped 12.35% to RM1.77 during the period. HSC is the group’s third largest shareholder with a 19.25% stake as at Dec 23, after Tan Kee Choong with 24.9% and Chooi Yoey Sun with 24.76%.

The group posted a net profit of RM6.67 million in the first quarter ended Sept 30, 2014, an almost 230% increase from a year ago. Its revenue also more than doubled to RM59.35 million from RM27 million in the previous corresponding quarter.


This article first appeared in The Edge Malaysia Weekly, on December 29, 2014 - January 4, 2015.