Off-Market Trades:Pinehill Pacific, MPHB Capital, Bertam Alliance, SCH Group, KBES Bhd

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This article first appeared in The Edge Malaysia Weekly, on June 27 - July 3, 2016.

BETWEEN June 15 and June 21, 510.411 million shares worth RM901.771 million changed hands off market in blocks of at least 450,000 shares each.

Among the notable transactions were the 34.13 million Pinehill Pacific Bhd shares transacted in a single block trade on June 20 at 20 sen apiece. The block, worth RM6.83 million, made up a 22.78% stake in the company.

The shares were sold by Allgrow Capital (M) Sdn Bhd and acquired by Southgate Quays Holdings Sdn Bhd. Both companies are controlled by Pinehill’s executive chairman, Tan Sri Ketheeswaran Kanagaratnam, whose effective control of the company remains unchanged at 32.33%. However, in the process, his wife, Puan Sri Datin Vivienne Ketheeswaran, has emerged as a substantial shareholder via her deemed interest in Southgate Quays.

Pinehill is a palm oil plantation company with 4,000ha in Teluk Intan, Perak.

Meanwhile, general insurer MPHB Capital Bhd saw 35.65 million shares worth RM44.56 million, or a 4.09% stake, change hands in a single direct transaction on June 21 at RM1.25 a share.  

In contrast, MPHB’s shares closed at RM1.36 apiece on the same day. At press time, no disclosures on the change in shareholding had been made to Bursa Malaysia. Based on the company’s annual report, only three shareholders might have been able to make the trade. 

The largest shareholder is Tan Sri Datuk Surin Upatkoon, who has a 36.63% stake, followed by HSBC Nominees (Asing) Sdn Bhd wita 5.4% and UOB Kay Hian Nominees (Asing) Sdn Bhd with 4.99%, or 35.65 million shares, which are pledged for Citibase Ltd.

At the same time, China Automobile Parts Holdings Bhd (CAP) saw 80.71 million shares, or a 5.93% stake, change hands during the period. While the volume was high, the value of the shares was only RM2.83 million. The 20 trades were made at between 3.5 sen and 4 sen apiece.

Interestingly, the maker of automobile chassis components saw high daily trading volumes in the open market on June 14 and 15, hitting 72 million and 76 million shares respectively. However, the share price continued its downward trend, falling to three sen on June 21, while volumes eased to only four million shares a day.

Meanwhile, property developer Bertam Alliance Bhd saw 20.75 million shares or a 10.03% stake traded off market. The seven large blocks were traded over several days, mostly at 43 sen apiece. Only one block of 745,000 shares was transacted at 47 sen apiece on June 21.

At press time, no announcement had been made to Bursa Malaysia regarding the changes in substantial shareholdings.

SCH Group Bhd also saw 13.6 million shares change hands, making up a 3.3% stake in the company. The shares were traded in three blocks on June 21 at 21 sen apiece. SCH Group’s main business is supplying quarry industrial products, machinery and equipment.

On June 20, KBES Bhd saw 5.3 million shares, or a 4.21% stake, transacted off market in three blocks at 50 sen apiece. In contrast, the company’s share price closed at 36 sen on June 21, unchanged from the previous day. Also known as Konsortium Bas Ekspres Semenanjung, the company’s shares are very thinly traded on the open market.