Off-Market Trades: M-MODE Bhd, Taliworks Corp Bhd, MAA Group Bhd, Tiger Synergy Bhd, Petronas Chemicals Group Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on July 2, 2018 - July 08, 2018.
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M-MODE Bhd saw 50.89 million shares, or a 31.3% stake, change hands in eight direct deals for RM29 million in total on June 22. The transaction price of 57 sen each was a 48% premium to the closing price of 38.5 sen that day.

The seller was chairman and managing director Datuk Lim Thean Keong, who no longer holds any shares.

Executive director Ong Chee Koen bought 23.03 million shares via Ecobuilt (M) Sdn Bhd (18.19 million shares) and E&J Venture Sdn Bhd (4.84 million shares), raising his deemed interest from 14.16% to 20.16% after the deal. The buyer for the remaining shares was not immediately known at the time of writing.

M-Mode, which diversified from mobile value-added content into property construction, said on June 8 that its wholly-owned unit won a RM260.57 million contract to construct a 25-storey mixed-use commercial development in Kota Kinabalu, Sabah. The three-year project is expected to contribute positively to earnings for the financial year ending May 31, 2019.

On June 20, Taliworks Corp Bhd saw 20 million shares, or a 1.65% stake, change hands in a single direct deal at 78 sen each or RM15.6 million in total. The transaction price was just above the 77 sen apiece the stock fetched on the open market at the time but within the 77 sen to 78.5 sen range it traded at on that day.

The buyer was major shareholder Datuk Lim Chee Ming, who raised his direct stake to 46.83 million shares, or a 3.87% stake, after the deal. He is also deemed interested in another 49.95% stake. Chee Ming is the cousin of executive director Datuk Lim Yew Boon and elder brother of non-executive director Lim Chin Sean.

Meanwhile, MAA Group Bhd saw a stake of nearly 29% change hands in two direct deals for RM51.2 million on June 25. The shares was sold at 65 sen, which was the price at which 23,000 shares changed hands on the open market that day.

Stock exchange filings show they are likely a left pocket to right pocket transaction by entities linked to  Melewar Group executive chairman Tunku Yaacob Khyra, whose deemed holdings in MAA remain unchanged at 105.78 million shares or 38.67%.

Melewar Acquisitions Ltd bought 78.84 million shares (28.82%), of which 40.3 million shares were sold by Melewar Khyra Sdn Bhd and the remaining 38.51 million shares by Melewar Equities Sdn Bhd. A beneficiary of a trust known as Khyra Legacy Bhd, Tunku Yaacob is also deemed interested in MAA shares held by Melewar Equities (BVI) Ltd.

Closing at 65 sen last Tuesday, MAA’s share price was down 15.6% year-to-date. MAA, which became a Practice Note 17 company after selling its core insurance business to Swiss-based Zurich Insurance Co Ltd in 2011, was given an extension to Oct 31 this year to submit a regularisation plan. In April, MAA said it aborted plans to invest in an independent oil producer in Kaliningrad, Russia.

At Tiger Synergy Bhd, about 20 million shares, or a 4.53% stake, changed hands in three direct deals on June 26 at 9 sen each or RM1.8 million in total. The transaction price was below the 10 sen to 10.5 sen the stock fetched on the open market that day. The buyers and sellers were not immediately known.

The off-market transactions with the largest value was at Petronas Chemicals Group Bhd. Some 38.79 million shares, or a 0.48% stake, changed hands at RM8.40 each in three direct deals for RM325.83 million in total on June 20 and 21. Another 500,000 shares changed hands at RM8.39 on June 20 in a crossed trade.

The counter traded at between RM8.35 and RM8.45 on those two days. The buyer and seller were not immediately known.



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