Off-Market Trades: Asia Media Group Bhd, Handal Resources Bhd, Kronologi Asia Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on March 4, 2019 - March 10, 2019.
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DURING the period under review, off-market transactions involving companies listed on Bursa Malaysia included the disposal of 12 million shares or a 5.02% stake in Asia Media Group Bhd by its founder and CEO, Datuk Wong Shee Kai, in two direct deals at 16.5 sen per share.

On Feb 21, Wong disposed of eight million shares or a 3.34% stake through his investment holding vehicle, Wong SK Holdings Sdn Bhd, reducing his stake to about 1.7% and ceasing to be a substantial shareholder of the digital out-of-home media company.

The next day, Wong disposed of four million shares, further trimming his stake to only 153,000 units or 0.064%. It is not known whether he will be replaced as CEO.

Asia Media’s share price has appreciated considerably over the past 52 weeks, adding 88.5% to its market value. The stock was trading at 16 sen as at last Wednesday, valuing the group at RM38 million.

In the first nine months of the financial year ended Dec 31, 2018, Asia Media recorded a net loss of RM2.2 million against a net profit of RM654,000 in the previous corresponding period. For the full year of 2017, the group made a net profit of RM2.23 million.

Over at Handal Resources Bhd, deputy managing director Joel Emanuel Heaney disposed of two million shares or a 1.25% stake at 33 sen per share on Feb 21. The deal reduced his holding in the offshore crane services provider to 8.17 million shares or 5.11%.

Handal’s share price performance over the past 52 weeks has been a tale of two halves. Between Feb 27 and July 30 last year, the stock rallied 123% to hit 53.5 sen. Thereafter to Dec 14, it slid to 27.5 sen.

But the counter has started to make a slow comeback and closed at 34.5 sen last Wednesday, valuing the group at RM55 million.

The loss-making offshore services provider is currently in the middle of material litigation with Kemuncak Lanai Sdn Bhd over the purchase of a 51% stake in Simflexi Sdn Bhd, an offshore pipeline engineering and installation services provider.

On Feb 21, Kronologi Asia Bhd saw 9.55 million of its shares, or a 2.39% stake, traded off market at 64.5 sen per share, according to Bloomberg data. The IT services provider did not make any announcement to Bursa pertaining to the transaction and the parties involved are not known.

On the day of the transaction, the counter was trading at between 65 sen and 68.5 sen. At its close of 63 sen last Wednesday, it had lost about 23% of its market value over the past 52 weeks.

There have also been other significant share movements. On Jan 31, Piti Pramotedham ceased to be a substantial shareholder after disposing of 12 million shares or a 3% stake.

Kronologi Asia is also in the midst of acquiring Sandz Solutions (Singapore) Pte Ltd for RM75 million from Desert Streams Investments Ltd, the amount to be satisfied via the issuance of 123.6 million shares or a 23.65% stake in Kronologi Asia at 56.65 sen per share, plus RM5 million cash.

Desert Streams is wholly owned by Enrique Galang Velasco, who is also the managing director of Sandz. The acquisition of Sandz comes with a profit guarantee of US$1.5 million for the financial year ending Dec 31, 2019.

 

 

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