Off-Market Trades: Seremban Engineering Bhd, SMTrack Bhd, Titijaya Land Bhd, Managepay Systems Bhd

This article first appeared in The Edge Malaysia Weekly, on September 9, 2019 - September 15, 2019.
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NOTABLE off-market trades during the week under review included those at Seremban Engineering Bhd (SEB), which saw MIE Industrial Sdn Bhd emerge as its new controlling shareholder on Sept 3 with 55.55 million shares or a 69.72% stake, triggering a mandatory general offer for the remaining shares not owned by MIE.

According to a notice of the offer, which the group received on the same day the transactions took place, MIE had inked two share sale agreements — one with Success Transformer Corp Bhd (STC), which owned 65.26% of SEB, and the other with four other shareholders for the balance.

The shares were transacted at 50 sen apiece, a premium of 15.2% to SEB’s five-day volume-weighted average price of 43.4 sen. The counter closed at 44.5 sen on Sept 3, valuing SEB at RM35.6 million.

MIE’s major shareholders are Datuk Tengku Mahamad Tengku Mahamut with a 35% stake, CTCI Malaysia Sdn Bhd (28%), Innovest Investment Corp (21%) and Datuk Khoo Chee Hong (16%). The company intends to keep the listing status of SEB.

In a separate filing, STC says it decided to sell its stake in SEB because it believes the business would remain challenging and the disposal represents an opportunity to monetise its investments.

Low-cost carrier aspirant SMTrack Bhd saw 1.8 million shares, or a 1.15% stake, traded off market on Aug 29 at 15 sen apiece via direct transactions.

The company, which provides radio frequency identification tagging and tracking services, announced on July 22 a plan to raise RM3.22 million via private placement involving the issuance of up to 14.89 million shares.

A total of RM2.52 million of the gross proceeds will be used to fund the acquisition of a 60% stake in Citilink Aviation (M) Sdn Bhd.

On Aug 27, SMTrack said the first tranche of the placement would be priced at 19.6 sen per share — a 9.97% discount to its five-day volume-weighted average price up to and including Aug 26 of 21.77 sen.

SMTrack’s share price has been rallying since the start of the year, and as at last Wednesday, it was 182.4% higher. At its close of 24 sen, the company’s market capitalisation was RM37.44 million.

Over at property developer Titijaya Land Bhd, 4.5 million shares, or a 0.33% stake, were transacted off market via direct deals on Aug 29, according to stock market data. The shares were transacted at 30 sen apiece.

Titijaya has been undertaking share buy-backs since the start of the year. Its outstanding treasury shares as at Sept 3 stood at 77.8 million, against 32.76 million on Dec 31, 2018. The counter has been trading at around 30 sen this year.

For the financial year ended June 30, 2019, Titijaya chalked up RM34.9 million in net profit, 52% lower than the preceding year’s. The group announced a dividend of 0.15 sen per share for the year.

Managepay Systems Bhd saw its largest shareholder and group managing director, Datuk Chew Chee Seng, increase his stake in the e-payment service provider after acquiring 5.04 million shares, or a 0.71% stake, on Aug 29.

The acquisition, at 10 sen per share, raised Chew’s stake in the loss-making company to 23.44%. Year to date, Managepay’s share price was unchanged at 10.5 sen. It has been trading within a range of 9.5 sen to 14.5 sen. At present, the company is valued at RM75 million.

 

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