Off-Market Trades: Prestariang, Tadmax Resources, Chin Hin Group, KPJ Healthcare,Handal Resources

This article first appeared in Capital, The Edge Malaysia Weekly, on December 24, 2018 - December 30, 2018.
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PRESTARIANG Bhd saw 117.19 million shares, or a 24.3% stake, change hands off market via four direct transactions worth RM29.89 million on Dec 14. The shares were traded at 25.5 sen apiece, at a slight discount to its closing price of 27 sen that day.

The stake was the entire shareholding of president and CEO Dr Abu Hasan Ismail, who was forced to sell due to a margin call.

The margin position that spurred the sale was held by his private vehicles Ekohati Sdn Bhd, Sigma Dedikasi Sdn Bhd and Anjakan Evolusi Sdn Bhd.

However, Abu Hasan — who founded the information and communications technology (ICT) company in 2003 — is staying on as CEO with the board’s backing, Prestariang said last Tuesday.

The counter’s share price has plunged 78.32% over the past year. From a one-year high of RM1.88, it fell below the 30-sen mark in mid-December, a level unseen for years. Last Wednesday, it surged 12.28% to 32 sen, giving the company  a market capitalisation of RM154.34 million.

On Dec 10, the government said it was cancelling a RM3.5 billion national immigration control system (SKIN) project to cut operating costs. Prestariang has a 70% stake in SKIN.

Meanwhile, a total of 38.15 million Tadmax Resources Bhd shares were sold directly via three off-market deals on Dec 17 and 18. The shares represent a 4.87% block and were priced between 20 sen and 22 sen apiece, valuing the transactions at RM7.8 million overall.

Of these, 16 million shares, or a 2.04% stake, were sold by managing director Datuk Seri Anuar Adam, according to a Bursa Malaysia filing. Anuar is left with 43.45 million shares or 5.55% interest held directly.

Tadmax’s latest annual report shows that Anuar had 178.55 million shares or 26.43% as at April 5, but he has been paring his stake fast over the past few weeks. Data shows that he sold 34 million shares on Nov 30, 10.5 million shares on Dec 3 and 74.6 million shares on Dec 4.

In the nine months ended Sept 30 (9MFY2018), Tadmax recorded a net profit of RM2.66 million from RM120.22 million in revenue, compared with a net profit of RM27.56 million from RM64.51 million in revenue in the previous corresponding period.

However, the 9MFY2017 net profit included a paper gain of RM56.61 million due to the revaluation of property.

The stock has fallen 28.81% over the past year. Last Wednesday, it closed at 21 sen, giving the company a market capitalisation of RM164.49 million.

Other interesting off-market deals included a block of 10 million Chin Hin Group Bhd shares, or a 1.82% stake, that changed hands at 67 sen apiece in a single transaction worth RM6.7 million on Dec 18. Chin Hin’s share price has declined by 41.96% over the past year. The buyer and seller were not known at the time of writing.

On Dec 17, KPJ Healthcare Bhd saw 48 million shares, or a 1.12% block, traded directly in a single deal worth RM51.84 million or RM1.08 per share, at a slight premium to its close of RM1.03 that day. It is likely a left-pocket to right-pocket transaction with filings showing Johor Corp selling 48 million shares to JCorp Capital Solutions Sdn Bhd in a married deal that day. Year to date, the counter is sitting on an 11.13% gain.

Meanwhile, at Handal Resources Bhd, 3.41 million shares, or a 2.14% stake, were sold via three direct deals on Dec 18. The shares were priced at 32 sen each, at a one-sen premium to its closing price that day.

Over at Acoustech Bhd, 10.57 million shares, or a 5.44% stake, were transacted via two direct deals less than 30 minutes apart on Dec 13. The shares were valued at 43 sen each.

According to Bursa Malaysia filings, the shares were treasury shares transferred by the company as partial payment for an RM18 million acquisition of the development rights and interest in a 44-storey serviced apartment project.

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