Off-Market Trades: Mudajaya Group Bhd, Tiger Synergy Bhd, Hubline Bhd, Kronologi Asia Bhd, EcoFirst Consolidated Bhd, CI Holdings Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on December 3, 2018 - December 09, 2018.
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MULPHA International Bhd acquired 90.3 million shares or a 15.3% stake in Mudajaya Group Bhd from its wholly-owned subsidiary, Mulpha Infrastructure Holdings Sdn Bhd, on Nov 22 at 36 sen apiece — at a 4.3% premium to the stock’s closing price that day.

The transaction was in line with the diversified group’s proposed plan to distribute to its shareholders up to 90.3 million shares in Mudajaya via a dividend-in-specie as an extension to the group’s streamlining exercise where it will gradually dispose of its non-core investments.

According to filings with Bursa Malaysia, the proposed dividend-in-specie is also to reward the group’s shareholders, providing them an opportunity to invest directly in Mudajaya, which is involved in construction and civil engineering, at no cost. Following the acquisition, Mulpha International holds a direct interest in the company with the 90.3 million shares.

Over at Tiger Synergy Bhd, 37 million shares, or a 5.15% stake, changed hands off market in three blocks on Nov 23 and 27.

According to filings with Bursa, Goh Ching Mun, who emerged as a substantial shareholder in Tiger Synergy on Nov 7, acquired 17 million shares via a direct deal at seven sen apiece on Nov 23, raising his stake in the company to 21.1%.

Filings also show the issuance of 15 million new shares following the conversion of the principal amount of redeemable convertible notes of RM1.5 million to new ordinary shares in the property player at the issue price of 10 sen per share on the same day.

The third block of five million shares was traded on Nov 27 at seven sen apiece — at a 22.2% discount to the stock’s closing price that day.

At Hubline Bhd, 75.6 million shares, or a 3.2% stake, were traded off market in four tranches from Nov 21 to 27 at four sen apiece. At the time of writing, the parties involved in the transactions were not known.

The shipping group continued its recovery, reporting its third straight quarter of positive results for its latest quarter ended June 30 (3QFY2018), with a net profit of RM325,000.

Meanwhile, Bloomberg data shows that about 10 million shares, or a 2.51% stake, in enterprise data management solutions provider Kronologi Asia Bhd were traded off market on Nov 23 at 66 sen apiece — at a slight discount to the stock’s closing price of 66.5 sen that day.

According to filings, acting group CEO and chief technology officer Philip Teo was the seller, disposing of the stake via a married deal. Following the disposal, Teo still has a 6.3% stake in the company.

Other companies that saw substantial stakes traded off market during the period under review were EcoFirst Consolidated Bhd (1.54%) and CI Holdings Bhd (1.16%).

For EcoFirst Consolidated, the transactions were done in three blocks on Nov 21 and 23. On Nov 21, two blocks — two million shares and 9.82 million shares — were traded at 30 sen and 31 sen apiece respectively. The third block of 584,000 shares was traded at 28 sen apiece. Filings show that Datuk Tiong Kwing Hee acquired the 584,000 shares from his daughter.

As for CI Holdings, 1.9 million shares, or a 1.16% stake, changed hands off market on Nov 27 at RM1.65 — at a slight discount to the stock’s closing price of RM1.66 that day. At the time of writing, the parties involved in the transaction were not known.



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