Off-market trades: Redtone International, Bertam Alliance, SKP Resources, Ingenuity Consolidated and Reach Energy

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SOME 471.04 million shares valued at about RM767.9 million were traded off market from March 25 to March 31 in blocks of at least 500,000 shares.

Among the more notable transactions were those at REDtone International Bhd, which saw 70.1 million shares or a 10.5% stake crossed off market on March 27.

They were transacted in two blocks of 32.1 million and 38 million shares respectively, in a direct deal, for a total value of RM665.57 million.

On March 27, REDtone received notice of a conditional takeover offer at 80 sen per share from Juara Sejati Sdn Bhd, a wholly owned subsidiary of Berjaya Group Bhd, which is in turn a wholly owned subsidiary of Berjaya Corp Bhd.

Filings with Bursa Malaysia that day show that the 70.1 million shares were sold by REDtone’s chairman and non-independent non-executive director Datuk Seri Syed Abbas Al Habshee to Juara Sejati.

Sultan of Johor Sultan Ibrahim Sultan Iskandar as well as Berjaya Corp have been accumulating shares in the mobile virtual network operator. Sultan Ibrahim currently owns 134 million REDtone shares or a 20.13% stake, up from 4.8%, after he converted his warrants and bought shares on the open market.

Berjaya Corp is currently the single largest shareholder of REDtone with 258.36 million shares or a 38.81% stake. Syed Abbas owns 10.53% equity interest in REDtone after disposing of the shares to Berjaya Corp.

Meanwhile, Bertam Alliance Bhd saw 17.4 million shares, or an 8.4% stake, changing hands at an average  price of 84 sen per share or RM14.75 million in total on March 26 and 31.

Some 5.4 million Bertam shares were transacted at 81 sen per share, and the remaining 12 million at 87 sen. At press time, the transacting parties for the 12 million shares were not known.

A Bursa Malaysia filing shows that founder and managing director, Lim Nyuk Foh, bought 5.4 million shares or a 2.61% stake in the property developer and construction firm. Lim is also the managing director of timber processing company, Priceworth International Bhd.

Over at SKP Resources Bhd, some 10 million shares or a 4.8% stake were traded in a single direct transaction of 82 sen per share on March 31.

The block was sold by managing director and executive chairman Datuk Gan Kim Huat, who still holds 14.11% direct interest or 127.03 million shares in SKP, and indirect interest of 49.51% or 445.56 million shares.   

On the same day, the company announced that the Ministry of International Trade and Industry had, in a letter dated March 30, approved the transfer of 172 million SKP shares to Tecnic Group Bhd as part of the settlement for the acquisition of the latter’s three subsidiaries.  

At Ingenuity Consolidated Bhd, some 40.4 million shares with a total transaction value of RM3.04 million were traded off market. On March 27, 39.4 million shares were traded off market in five blocks, via direct deals, at 7.5 sen each, for a total of RM2.96 million. One block of 500,000 shares was traded at 8 sen per share, while on March 30, another block of 500,000 shares was transacted at 8.5 sen each.

A March 26 filing with Bursa Malaysia shows that GD Express Carrier Bhd’s chief operating officer, Wong Eng Su, has emerged as a substantial shareholder in Firstwide Success Sdn Bhd, which controls a 9.22% stake, or 87.97 million shares, in Ingenuity. 

On the same day, Chin Boon Long and his spouse Chan Swee Ying ceased to be indirect substantial shareholders of Ingenuity after disposing of their entire equity interest in Firstwide Success Sdn Bhd.

Over at Reach Energy Bhd, 47.86 million shares or a 3.7% stake in the oil and gas special purpose acquisition company, worth RM30.08 million, were transacted in a single direct sale at 63.8 sen per share.

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This article first appeared in Capital, The Edge Malaysia Weekly, on April 6 - 12, 2015.