Off-Market Trades: Yokohama Ind, Perisai Petroleum, Only World Group, HeveaBoard and Signature Intl

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A total of 410.39 million shares worth RM538.8 million changed hands off market in blocks of at least 450,000 shares between Feb 11 and 16.

Yokohama Industries Bhd (fundamental: 1.0; valuation: 0.60) saw 53.52 million of its shares worth RM90.98 million traded in two off-market transactions on Feb 11 and 13. The first transaction, which involved 53.03 million shares, was priced at RM1.70 apiece and constituted a 60.9% stake in the car battery manufacturer.

The transaction was linked to an unconditional takeover offer of Yokohama by Fordington Pte Ltd, which entered into a share purchase agreement with HSG Investments Pte Ltd for the latter’s 62% stake in Yokohama.

The share acquisition triggered the mandatory general offer for all shares not already owned by the offeror at the consideration price of RM1.70 apiece. According to its Feb 13 announcement, Fordington does not intend to maintain the listing status of Yokohama.

Jackup drilling rig provider Perisai Petroleum Teknologi Bhd (fundamental: 0.35; valuation: 1.20) saw 26.61 million of its shares or a 2.2% stake transacted between Feb 11 and 16. The transactions were priced in the range of 59.5 sen to 72.5 sen apiece, which were in line with a substantial rally in Perisai’s stock price on the open market.

The stock, which had gained 17% since Feb 11 to close at 69 sen on Feb 16, saw more than 100 million of its shares traded daily on average during the period.

After triggering an unusual market activity query by Bursa Malaysia on Feb 13, Perisai replied that it was unaware of any factor or development that could have contributed to the price rally. The counter has gained 47% to date (as at Feb 16), following the strong rebound in crude oil prices as well as in oil and gas stocks.

Meanwhile, Only World Group Holdings Bhd (OWG) (fundamental: NA; valuation: NA) saw a 3.7% stake change hands on Feb 12. The trade, which comprised some seven million shares, was priced at RM1.31 apiece, a steep discount to the stock’s closing price of RM1.46 on the same day. The stock closed at RM1.56 on Feb 16.

The Edge Financial Daily reported on Feb 10 that the stock’s rally was attributed to the strong recommendation by a local investment bank and speculation that Genting Bhd chairman and CEO Tan Sri Lim Kok Thay had invested in the company. However, OWG officials said the company was not aware of the rumours.

Over at HeveaBoard Bhd (fundamental: 1.30; valuation: 2.40), two million shares were transacted on Feb 16 at RM2.54 apiece. The trade, which represented 2% of the company’s share base, was done at a 9% discount to its RM2.79 closing price.

The stock had risen by as much as 27% since Feb 10 following an initiation of coverage note by CIMB Research. The firm had pegged a target price of RM4.06 to the stock, highlighting the particleboard maker’s shift to higher-margin products and its exporter status as a beneficiary of the stronger US dollar.

Also worth noting were the six million Signature International Bhd shares (fundamental: 2.10; valuation: 2.40) that were traded at RM1.78 apiece in two transactions on Feb 16. The trades, which amounted to RM10.68 million and constituted 5% of Signature’s share base, were done at a discount to the stock’s closing price of RM1.94 on the same day.

The stock’s Feb 16 closing price represented an all-time high after the group posted a net profit of RM12.2 million for its second quarter ended Dec 31, 2014, 318% higher than the same period a year ago, thanks to higher sales from its kitchen and wardrobe product segment.

(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 23 - March 1, 2015.