This article first appeared in The Edge Malaysia Weekly, on July 11 - 17, 2016.

BETWEEN June 29 and July 5, some 787.7 million shares worth RM1.2 billion changed hands off market in blocks of at least 300,000 shares. Among the more notable transactions were those at Tiong Nam Logistics Holdings Bhd and Atlan Holdings Bhd, which each saw 2.8% equity interest change hands.

On July 4, managing director and substantial shareholder Ong Yoong Nyock acquired 7.5 million shares or a 1.8% stake in Tiong Nam in a direct deal at RM1.43 apiece, increasing his direct stake in the logistics player to 20%. The transaction price was slightly below its net asset value per share of RM1.44 and closing price of RM1.46 on the day.

Another four million Tiong Nam shares or a 1% stake was traded in two direct deals the following day at RM1.45 apiece. Parties to the deals, however, were not revealed at the time of writing. Trading at a trailing price-earnings ratio of 7.5 times and with a net gearing ratio of 85.5%, Tiong Nam is back on investors’ radar screen due to a potential real estate investment trust (REIT) listing to de-gear and unlock the value of its income-generating warehouses.

Over at duty-free retailer Atlan, seven million shares or a 2.8% stake worth RM34.2 million changed hands in a single direct deal on July 1 at RM4.88 apiece — a 6% discount to the open market price of RM5.19. The buyers and sellers of the deal were unknown at press time, but Tan Sri Vincent Tan’s Berjaya Corp Bhd has been accumulating Atlan shares on the open market since April.

In the past three months, Berjaya Corp’s subsidiaries have bought a total of 1.2 million shares or a 0.4% stake in Atlan, raising the group’s equity interest to 24%. Atlan, which saw its share price surge to a five-year high of RM5.30 in April, expects its duty-free business to improve with global travel retail player Gebr Heinemann coming on board.

Elsewhere, Berjaya Corp on June 30 completed the disposal of its remaining 76 million shares or 6.6% stake in Mazda distributor Berjaya Auto Bhd to Dynamic Milestone Sdn Bhd, a special purpose vehicle (SPV) formed to facilitate a management buyout. The shares were transacted at RM2.10 apiece, 9.5% lower than the RM2.31 they fetched on the open market at the time.

After the transaction, Berjaya Corp’s effective equity interest in Berjaya Auto remains unchanged at 17.5% via a 33.3% stake in SPV and a 0.4% stake held by its associate company, Berjaya Sompo Insurance Bhd. Under the share sale agreement, the remaining 66.7% stake in the SPV will be controlled by the management party.

On July 4 and 5, Reliance Pacific Bhd saw 122.8 million shares or a 14.3% stake worth RM27.6 million traded off market at 22.5 sen per share, representing a substantial 38% discount to the open market price of 36 sen to 36.5 sen. According to filings with Bursa Malaysia, the company’s major shareholders — Datuk Gan Eng Kwong and his spouse Datin Irene Tan — disposed of 9.2 million shares or a 1.1% stake on July 4 to Mazmur Capital Sdn Bhd, a private vehicle controlled by executive director See Ah Sing.

On July 5, 113.6 million shares or a 13.2% stake changed hands in multiple direct deals at the same price of 22.5 sen. Parties to the July 5 transactions were not revealed at the time of writing but Ibu Kota Developments Sdn Bhd and Mazmur Capital have been increasing their shareholding in the loss-making travel and tour company over the past months.

Meanwhile, pesticide maker Imaspro Corp Bhd saw four million shares or a 5% stake traded in two direct deals on July 4 and 5 at RM1.90 per share — about 11% to 12% below the closing price on those days. Parties to the deals were unknown at the time of writing. For 3QFY2016, the company’s net profit plunged 36.7% year on year to RM2.8 million, largely due to a 60.6% decline in overseas sales to RM8.5 million. 

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