Off-Market Trades: Kelington Group Bhd, KPS Consortium Bhd, Malayan United Industries Bhd, Pan Malaysia Holdings Bhd, MUI Properties Bhd, SCH Group Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on October 15, 2018 - October 21, 2018.
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KELINGTON Group Bhd saw three million shares change hands at RM1.09 apiece on Oct 3. According to filings with Bursa Malaysia, Gan Hung Keng and Ong Weng Leong had each sold 1.5 million shares off market to institutional investors.

The shares represent 1.18% of Kelington’s issued shares. Gan and Ong are the largest shareholders in the engineering, construction and maintenance service company, holding a 36.97% stake, through Palace Star Sdn Bhd.

The RM1.09 per share consideration was at a 3.54% discount to Kelington’s opening price of RM1.13 on Oct 3 and an 8.4% discount to the closing price. It is not known which institutional investor bought the shares.

Kelington’s share price has been on an upward trend this year. It has risen 46% as at last Wednesday, valuing the group at RM303.6 million. On Oct 9, Kelington announced that it had won three contracts worth RM101 million in Singapore and China.

At plywood manufacturer KPS Consortium Bhd, second largest shareholder Lee Shee acquired 2.5 million shares at 53.5 sen apiece, or RM1.34 million in total, via a direct off-market deal on Oct 8. The block represents 1.69% of KPS’ issued shares.

The acquisition raised Lee’s shareholding in KPS to 11.2%, behind Koh Poh Seng, who holds 44.8%. Lee has been increasing his holding in KPS since Sept 24, when his stake was 6.63%.

The 53.5 sen per share consideration was at a 0.94% premium to KPS’ prevailing share price on Oct 8. Year to date, the counter has been trading sideways. It closed at 52 sen per share last Wednesday, giving the group a market capitalisation of RM76.9 million.

Two companies under Malayan United Industries Bhd (MUI) saw off-market transactions during the period under review.

At Pan Malaysia Holdings Bhd, 40 million shares, or a 4.31% stake, were transacted off market at 9.5 sen apiece on Oct 4 and 5. MUI Properties Bhd saw 7.24 million shares, or a 0.98% stake, change hands at 28 sen apiece on Oct 3.

MUI is deemed to hold 69.19% of Pan Malaysia Holdings and 50.83% of MUI Properties.

The Pan Malaysia Holdings shares were transacted at a 9.5% discount to the counter’s closing price of 10.5 sen on Oct 4 and 5.

Meanwhile, the MUI Properties shares were transacted at a 7.7% premium to the counter’s closing price of 26 sen on Oct 3.

Tan Sri Khoo Kay Peng is the largest shareholder of MUI with a 47.58% stake. Effective Jan 1, Khoo has been redesignated as MUI executive chairman while his son, Andrew Khoo Boon Yeow, has been appointed CEO.

In June, Andrew said in an interview with a local newspaper that the group is undergoing restructuring and business transformation, which may include the selling of some assets.

At SCH Group Bhd, managing director and deputy chairman Lau Mong Ling disposed of 18 million shares at 22 sen apiece via direct off-market deals on Oct 4. The block represents 3.24% of SCH’s issued shares.

After the disposal, Lau is left with a 1.06% stake in the supplier of quarry industrial products.

The 22 sen per share consideration was at a 33.3% premium to SCH’s prevailing share price of 16.5 sen on Oct 4. Year to date, the counter has lost 17.95% of its market value.

 

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