This article first appeared in Capital, The Edge Malaysia Weekly on February 3, 2020 - February 9, 2020

ONE of the notable off-­market transactions during the period under review was that at Datasonic Group Bhd, where 40 million shares, or 3% equity interest, traded off market in a block trade at RM1.63 apiece, for a transaction value of RM65.2 million.

Datasonic’s stock continued on its upward trajectory after tripling in value last year. It hit a five-year high of RM1.67 on Jan 24, following news in mid-January that it had obtained a one-year extension of its contract — from Jan 1, 2020, to Dec 31, 2020 — to supply raw MyKad and related consumables to the government.

In May 2016, Datasonic was awarded a 3½-year contract worth RM260.4 million for the supply of 12 million raw MyKad and MyKad consumables to the National Registration Department, from July 1, 2016, to Dec 31, 2019. News of the extension this year further fuelled the stock, which closed at RM1.59 on Jan 29.

Datasonic’s latest available results show net profit for the six months ended Sept 30, 2019, rising 75% year on year to RM27.83 million as revenue strengthened 15% to RM121.86 million.

Over at hotel owner and operator Impiana Hotels Bhd, 100 million shares traded off market on Jan 22 at two sen apiece, for a total transaction value of RM2 million.

According to filings with Bursa Malaysia, Impiana’s substantial shareholder, Datuk Seri Ismail @ Farouk Abdullah, disposed of 100 million shares on Jan 22 in a direct off-market transaction, decreasing his direct and indirect shareholding 61.7%.

Sino Hua-An International Bhd, which is involved in the production of metallurgical coke, saw over 20 million shares, or 1.8% equity interest, traded off market during the period under review. The transaction was done in direct and block deals at 11 sen to 12 sen apiece.

Last month, the company signed a sales and purchase agreement to buy the entire stake in technology company TouchPoint Group for RM72 million cash — about half of Sino Hua-An’s entire market capitalisation of RM151.51 million at that time — after the revocation of the purchase of a 51% stake in TouchPoint eight months ago.

This follows the completion of its acquisition of Bistromalones Group in October, which made Sino Hua-An the new owner of the TGI Friday’s and Teh Tarik Place franchises in Malaysia. Sino Hua-An will have three core businesses after these acquisitions — food and beverage, digital solutions and the manufacturing of metallurgical coke, a material that is used as fuel for blast furnaces for making iron and steel.

For the nine months ended Sept 30, 2019, Sino Hua-An saw a net loss of RM39 million, versus a net profit of RM14.79 million in the same period the previous year, while revenue declined 9.7% to RM672.45 million.

Other off-market transactions include a 30 million block of Vortex Consolidated Bhd shares, or 7% equity interest, on Jan 24. The direct trade was done at nine sen apiece for a total transaction value of RM2.7 million.

At Xinghe Holdings Bhd, meanwhile, 30 million shares were traded off market in a direct deal on Jan 28. The transaction was done at 10 sen apiece for a total value of RM3 million. According to Bursa filings, substantial shareholders Li Hui Jun and Ma Guo Liang disposed of 30 million shares in a direct deal on Jan 28. As a result of the transaction, Li and Ma are left with a 14.9% stake in the logistics services provider.

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