Off-Market Trades: Seacera Group Bhd, Asia Knight Bhd, Boon Koon Group Bhd, Sarawak Oil Palms Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on July 23, 2018 - July 29, 2018.
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BETWEEN July 11 and 17, Seacera Group Bhd — a tile manufacturer that ventured into property development — saw a total of 22.73 million shares or a 6.06% stake worth RM9.5 million change hands in three direct deals.

Of these, 14.5 million shares were sold at 41.5 sen apiece, a 6.7% discount to its closing price of 44.5 sen on July 13. The seller is likely to be Datuk Ismail Othman-controlled Duta Global Sdn Bhd, which, according to stock exchange filings, had disposed of 14.5 million shares or a 3.8% stake on the same day.

To recap, Duta Global first emerged as a substantial shareholder of Seacera with a 26.81% stake or 90 million shares in August last year. It remains a substantial shareholder with 78.95 million shares and a direct stake of 21%.

Last Tuesday, a block of 7.16 million Seacera shares or a 1.9% stake changed hands for about RM3 million or 42 sen each. The transacting parties were unknown at press time. Stock exchange filings show that Datuk Ismail Othman bought 4.46 million shares or a little more than a 1% stake at undisclosed prices on July 17, raising his direct holding to 4.96 million shares while deemed interested in 83.91 million shares.

Seacera’s share price has fallen 51% year to date, closing at 43.5 sen last Wednesday and giving it a market capitalisation of RM163.2 million.

Over at Asia Knight Bhd, the moulded plastic products manufacturer saw a total of 33.93 million shares or a 5.88% stake change hands off market at 12.5 sen apiece on July 13.

Filings show that managing director See Teck Wah had offloaded two blocks of shares — 20.87 million and 13.05 million — that day. These shares were transacted in direct deals at 12.5 sen apiece — a discount of 16.6% to its closing price of 15 sen that day — for a total sum of RM4.24 million. Following the divestment, See’s total shareholding in Asia Knight declined to 34.12% from 40%.

Year to date, Asia Knight’s share price has dropped 14%, closing at 13.5 sen last Wednesday and giving it a market capitalisation of RM77.9 million.

Meanwhile, Boon Koon Group Bhd — a Penang-based rebuilt commercial vehicle manufacturer that is diversifying into property development — saw 10 million shares or a 3.37% stake cross off market on July 16. These shares were transacted in a single direct deal at 43 sen per share — a discount of 5.5% to its closing price of 45.5 sen — for a total sum of RM4.3 million. Filings did not identify the buyer or the seller.

It is worth noting that Datuk Seri Chiau Beng Teik — founder and deputy executive chairman of Chin Hin Group Bhd — is the single largest shareholder of Boon Koon with a direct stake of 28.67%. His eldest son, Haw Choon, has a direct stake of 2.83% in the company, so the father and son own at least 31.5% of the company collectively. A mandatory general offer could be triggered if their equity interest exceeds 33%.

Earlier this month, Boon Koon proposed the changing of the company’s name to Chin Hin Group Property Bhd.

Over at Miri-based planter and miller Sarawak Oil Palms Bhd, a total of 11.4 million shares or a 2% stake worth RM34.42 million changed hands off market. The shares were transacted in a single direct deal at RM3.02 per share on July 17, which was almost the same as the day’s closing price of RM3.03.



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