Off-Market Trades: Takaso, Focus Lumber, Kejuruteraan Samudra Timur, Petroliam Nasional, CME Group, DutaLand and Tropicana Corp

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FROM Jan 21 to 27, 306.4 million shares valued at RM574.8 million were traded off market in blocks of at least 500,000 shares.

Among the companies that saw notable transactions was Takaso Resources Bhd (fundamental: 1.25; valuation: 0.30). Some 15 million shares or a 7.57% stake in the company moved off market at RM9.75 million or 65 sen apiece on Jan 23. The buyer is likely to be OCR Land Holdings Sdn Bhd, which raised its direct interest to 13.88% after buying 15 million shares. OCR Land is controlled by Takaso director and substantial shareholder Ong Kah Hoe, who has a direct 9.4% and indirect 19.05% stake.

Over at Focus Lumber Bhd, 6.5 million shares or a 6.3% stake changed hands off market on Jan 26 and 27 in a series of direct deals at RM1.06 apiece or RM6.89 million in total. At press time, the transacting parties were not known.

The plywood and veneer lumber manufacturer saw its Taiwanese major shareholders paring their stakes in recent weeks. As at Dec 5, 2014, Lu Wei Hsu had 0.27% equity interest, down from 4.16% last October. He is the son of Lu Chin Ting, who has a 7.34% stake. Former executive director Chen Chun Hsiung also reduced his stake, to 8.28% as at Jan 13, 2015, from 8.98% in January 2014.

Kejuruteraan Samudra Timur Bhd (fundamental: 2.40; valuation: 1.20) saw 7.72 million shares or a 5.04% stake change hands off market during the week in review.
On Jan 26, 500,000 shares were traded in a block deal at RM242,500 or 48.5 sen apiece. The following day, 7.22 million shares changed hands in a direct deal at RM3.47 million or 48 sen per share, bringing the total amount transacted off market over two days to RM3.71 million. The stock closed at 50 sen on Jan 28.

The company, which specialises in tubular handling equipment for the upstream oil and gas industry, on Jan 16 said it secured a two-year contract from PrimeSourcing International Sdn Bhd, a unit of Petroliam Nasional Bhd, to undertake tubular inspection and maintenance services at the Asian Supply Base in Labuan.

Elsewhere, 10 million shares or a 2.27% stake in CME Group Bhd (fundamental: 0.20; valuation: 1.20) changed hands in a direct deal at 6.5 sen apiece on Jan 27. At the time of writing, it was not clear who the buyers or sellers were. Closing at 6.5 sen on Jan 28, the stock had fallen over 43% from its recent high of 11.5 sen on Sept 11, 2014.

Meanwhile, DutaLand Bhd (fundamental: 1.25; valuation: 0.90) saw 16.86 million shares or a 1.99% stake change hands in a direct deal on Jan 21 at 52 sen apiece or RM8.6 million in total.

According to a Jan 23 filing, Duta Equities Sdn Bhd purchased 16.92 million shares or a 2% stake on Jan 21. This brings its shareholding in the listed entity to 42.46%. DutaLand managing director Tan Sri Yap Yong Seong, non-executive director Datuk Yap Wee Keat and executive director Yap Wee Chun are all deemed interested in the private vehicle.

The largest off-market trade in terms of volume involved Tropicana Corp Bhd (fundamental: 1.30; valuation: 3.00). A total of 23.5 million shares or 1.71% equity interest changed hands on Jan 21 and 26 in a series of direct deals at RM1.05 apiece or RM24.68 million in total. The transacting parties were unknown at press time.

Tropicana shares closed at RM1.06 on Jan 28. On Jan 26, it agreed to sell Tropicana City Mall and Tropicana City Office Tower to CapitaMalls Malaysia Trust for RM540 million. The disposal will reduce Tropicana’s high gearing level, which stood at 71.75, according to The Edge Research.

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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This article first appeared in The Edge Malaysia Weekly, on February 2-8, 2015.