KUALA LUMPUR: SapuraKencana Petroleum Bhd vice-chairman Tan Sri Mokhzani Mahathir has bought an additional two million shares in the oil and gas (O&G) group, taking advantage of the recent sharp fall in its share price.
The Edge Financial Daily yesterday reported that Mokhzani, together with the group’s non-executive director Yeow Kheng Chew, had indicated their intention to deal in SapuraKencana shares during its close period. The duo were said to be planning to buy the shares.
Mokhzani, who earlier trimmed his stake in the group, bought back some shares yesterday through his private investment vehicle Kencana Capital Sdn Bhd.
With the latest share purchase, Mokhzani’s shareholding has increased to 607 million shares or 10.13%, while his direct interest stands at 9.49 million shares or 0.16%.
It is learnt that Mokhzani intends to continue accumulating shares, given the attractive valuation after the recent meltdown in most O&G stocks.
Mokhzani’s latest move to raise his stake in SapuraKencana comes as a surprise given that he sold part of his stake and relinquished his executive role in the group in February this year. The share purchase puzzled some quarters as Mokhzani’s share sale earlier had reinforced the belief that he would concentrate his investment in Yinson Holdings Bhd.
SapuraKencana’s share price plunged from RM4.40 in mid-July to a two-year low of RM2.44 on Wednesday. As a result RM11.7 billion of its market capitalisation evaporated in slightly more than four months. The stock was up five sen or 2.05% to close at RM2.49 yesterday, giving it a market capitalisation of RM14.92 billion.
Mokhzani is the third largest shareholder of SapuraKencana, after Sapura Holdings Sdn Bhd, which holds a 16.71% stake, and the Employees Provident Fund with 13.07%.
Other substantial shareholders are Seadrill Ltd (8.18%) and Skim Amanah Saham Bumiputra (6.23%).
This article first appeared in The Edge Financial Daily, on December 5, 2014.