Thursday 28 Mar 2024
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This article first appeared in The Edge Malaysia Weekly, on August 29 - September 4, 2016.

 

FROM Aug 17 to 23, a total of 890.84 million shares worth RM886.18 million changed hands off market in blocks of at least 400,000 shares. Among the notable transactions were those involving loss-making high precision component parts maker Wong Engineering Corp Bhd and Dagang NeXchange Bhd.

On Aug 23, TNTT Realty Sdn Bhd and Yong Loy Huat acquired 39.4 million shares or a 43.07% stake in Wong Engineering from the controlling Wong family at 65 sen apiece via direct transactions. TNTT Realty is a major shareholder of Tiong Nam Logistics Holdings Bhd and the private vehicle of its managing director Ong Yoong Nyock.

The acquisitions increased the collective shareholding of Ong and persons acting in concert from 10.5% to 53.4%, triggering an unconditional mandatory takeover for the remaining shares at 65 sen apiece. Following the announcement, the company’s share price fell from a one-year high of 70 sen on Aug 22 to 65 sen last Wednesday.

Over at ICT services provider Dagang NeXchange, managing director Zainal Abidin Jalil emerged as a substantial shareholder after he acquired 123.8 million shares or a 7.5% stake through its 78%-owned investment vehicle Arcadia Acres Sdn Bhd. The block of shares was crossed in a single direct deal on Aug 17 at 25 sen per share, slightly above the 24 sen the shares fetched on the open market.

For 2Q2016, Dagang NeXchange saw its net profit surge to RM89.5 million, buoyed by the share of profit amounting to RM85.3 million from its 30%-owned oil and gas (O&G) company Ping Petroleum Ltd. Operating income, however, fell 17.3% year on year to RM6.4 million. On Aug 3, the company completed its rights issue to raise RM97.7 million to fund the acquisition of two local O&G companies.

Meanwhile, paper and packaging materials firm Versatile Creative Bhd saw 12.1 million shares or a 10.3% stake cross in several direct transactions during the week under review. The shares were transacted at 60 sen per share, more than 40% below the market prices of RM1.03 to RM1.07 apiece. Parties to the deals were not known at the time of writing.

From June 2 to Aug 2, major shareholder Iris Healthcare Sdn Bhd — in which Federal Land Development Authority has a 22.9% stake — reduced its holdings in Versatile from 37.3% to 27.7%. Loss-making Versatile is considering diversifying into property development and construction after it received an offer to construct a US$69.3 million factory in May.

Aviation maintenance, repair and overhaul services provider Destini Bhd saw 72.9 million shares or a 7.2% stake crossed in direct deals from Aug 17 to 19 at a 16% to 21% discount to the market prices. On Aug 17, Lim Nyuk Sang @ Freddy Lim ceased to be a substantial shareholder after he sold 31 million shares or a 3.1% stake at 62 sen apiece, reducing his holding to 4.9%.

On Aug 19, another 41.5 million shares or a 4.1% stake was sold at 65 sen to 66 sen apiece. At press time, it was not known who had disposed of and acquired the shares. Destini, which is 21.7%-owned by Minister of Finance unit Aroma Teraju Sdn Bhd, had an order book of RM670 million as at March — 2.5 times 2015 revenue — mainly from the Royal Malaysian Air Force and a government agency.

At loss-making apparel maker Yen Global Bhd, eight million shares or a 5.9% stake changed hands in two direct deals on Aug 18 at RM1 apiece, 8.3% lower than the stock’s closing price that day. The identities of the sellers and buyers were not known at the time of writing.

Following the entry in July of new substantial shareholder Taiwan-listed Gemtek Investments Co Ltd, Yen Global’s shares rose to an all-time high of RM1.17 on Aug 19. On Aug 22, it was slapped with an unusual market activity query by Bursa Malaysia. The company replied that it was not aware of any reasons for the unusual activity. 

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