Multi Sports’ chairman sells 3.6% stake for RM3m

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KUALA LUMPUR: Multi Sports Holdings Ltd’s largest shareholder, Power Wide Holdings Ltd, disposed of another 18.3 million shares last Friday, representing 3.6% of its issued share base of 517.5 million, according to Bloomberg data. In a filing with Bursa Malaysia yesterday, the China-based shoe sole manufacturer announced the disposal was done at 16.4 sen via a married deal on the open market last Friday. The counter traded between 16 sen and 17 sen yesterday, and between 15.5 to 25.5 sen in the past 52 weeks.

With the latest disposal, Power Wide’s stake in Multi Sports now stands at 37.12% or 192.1 million shares. Lin Huozhi, 51, executive chairman of Multi Sports, who has a deemed interest in the disposal through Power Wide, has an indirect stake of 37.12% in the company post-disposal. Huozhi has been trimming his stake.

Last Tuesday and Thursday, Power Wide  disposed of 7.86 million shares in two blocks at 16.1 sen and 16 sen respectively. Huozhi’s deemed interest of 37.12% yesterday compared with a 45.1% interest — or Power Wide’s direct 45.1% stake — in Multi Sports as at April 30 this year, based on its  annual report.

The company has also seen some boardroom changes. On Aug 25, Lin Liying, 31, was re-designated from executive director to chief executive officer, replacing Huozhi. Huozhi remained as executive chairman. The company also saw the appointment of Malaysian Ang Wei Chuan, as independent and non-executive director. A filing with the exchange showed that Ang is the group treasury manager to InterOil Corp, which is listed on the New York Stock Exchange.

For the six months ended June 30 this year, Multi Sports’ net profit dipped to RM19.35 million from RM19.59 million. Revenue rose 6.4% to RM181.86 million from RM171 million. The company  ventured into the fashion apparel and accessories business in the second half of 2012

Multi Sports shares closed up 0.5 sen yesterday at 16.5 sen, giving it a market capitalisation of RM82.8 million.

 

This article first appeared in The Edge Financial Daily, on October 28, 2014.