Off-Market Trades:Lay Hong, KBES, Idimension Consolidated, Daya Materials

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This article first appeared in Capital, The Edge Malaysia Weekly, on February 1 - 7, 2016.

BETWEEN Jan 20 and 26, some 573.56 million shares worth RM910.73 million changed hands off market in blocks of at least 450,000 shares. Notable transactions included NH Foods Ltd, Lay Hong Bhd’s second largest shareholder, buying eight million shares or a 13.84% block at a sizeable discount to the open market price on Jan 21.

NH Foods, which now has a 22.9% stake, acquired the shares for RM40 million or RM5 apiece,  a 38% discount to the RM8.10 the shares were fetching that day.

The Tokyo-listed food processing company first emerged as a substantial shareholder in Lay Hong on Jan 8 after it bought 5.25 million shares or a 9.09% stake. Lay Hong is setting up a joint venture with NH Foods to expand overseas, including to Singapore and Japan. Lay Hong will leverage NH Foods’ R&D expertise in food processing.

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Sellers include Greenfield Hills Sdn Bhd, which ceased to be Lay Hong’s substantial shareholder after it sold 900,000 shares at RM5 apiece on Jan 21, a Jan 27 filing shows. It is worth noting that Lay Hong on Jan 11 fixed the issue price of 5.25 million placement shares at RM5.81 apiece.

Greenfield emerged as a substantial shareholder of Lay Hong on Sept 11 last year, after it bought a 6.3% stake or 3.25 million shares at RM3.05 apiece. It was among the investors that bought QL Resources Bhd’s 38.8% stake in Lay Hong. QL, in late 2014, mounted a takeover offer for Lay Hong but it was not successful.

Over at express bus operator KBES Bhd, some 22.4 million shares or a 17.8% stake changed hands at 50 sen apiece in a single direct deal on Jan 22, a 31.6% premium to the 38 sen they fetched on the open market. The price was also above the 52-week high of 41.5 sen reached on Aug 23, 2015.

As at Jan 6, KBES’s largest shareholder was Sani Zaleha Sdn Bhd, with 17.8%. At the time of writing, no updates had been made on substantial shareholding changes at the company. KBES’s net loss widened to RM3.78 million in the nine-month period ended Sept 30, 2015, from RM554,000 in the previous corresponding period. Although the company is in the red, its share price has increased 7% so far this year to close at 38 sen last Wednesday.

Eclub Interactive Sdn Bhd is no longer Idimension Consolidated Bhd’s substantial shareholder. It sold 30 million shares or a 6.06% stake in the latter at one sen per share on Jan 21 to its substantial shareholder Ang Beng Leong. The transaction made Ang a substantial shareholder of Idimension with a 9.53% stake (as at Jan 26). Eclub Interactive also disposed of 15 million warrants at 0.5 sen each to Ang on Jan 21. The shares were sold at a 85% discount to the 6.5 sen they fetched on the open market while the warrants were sold at a 75% discount to the two sen apiece they fetched on the open market.

Sedania Innovator Bhd saw six million shares or a 3% stake change hands via cross trades on Jan 20 for RM2.82 million or 47 sen apiece. The price was nearer to the lower end of the 46.5 sen to 51 sen range the shares were fetching on the open market. It closed at 46.5 sen that day. At the time of writing, there were no updates on substantial shareholding changes at the company.

Oil and gas services company Daya Materials Bhd saw 50 million shares or 2.88% of its share base change hands for RM4 million or eight sen apiece on Jan 26, just below the 8.5 sen to 9 sen they were fetching on the open market.

At the time of writing, Daya Materials, whose largest shareholder is Datuk Lim Thean Shiang with a 6.4% stake, had not announced any more substantial shareholding changes. The company has undertaken several corporate exercises in recent months, including setting up Daya PNG Ltd to undertake business activities in Papua New Guinea, on Jan 18. It also entered into a MoU with Petroleum Trading Joint Stock Company to collaborate in providing products and services to the Vietnamese oil and gas market.