Off-Market Trades: Signature International Bhd, Tiger Synergy Bhd, Sino Hua-An International Bhd, Magnum Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on December 17, 2018 - December 23, 2018.
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SIGNATURE International Bhd saw the largest off-market trade in the week under review as its co-founder and group managing director Tan Kee Choong transferred his holding of 64.5 million shares or a 28.5% stake to Tenyin Holding Sdn Bhd, which is fully owned by Tenyin (L) Foundation. Thus, Tan now has an indirect interest in Signature International via his holding in Tenyin (L).

The single transaction was done at 38 sen apiece, which was slightly higher than the trading price of 37.5 sen on the open market that day.

The kitchen furniture maker’s order book has been diminishing amid a subdued property market and Tan recently told reporters that the group is expected to deliver weaker results for the financial year ending June 30, 2019 (FY2019). In line with the weaker financial performance, Signature International’s share price has fallen 46.5% from a year ago, closing at 38 sen last Wednesday.

Tiger Synergy Bhd saw 61.5 million shares or a 7.32% stake traded off market. Bloomberg data shows that the shares changed hands in eight direct deals on Dec 5 and 6. On Dec 5, 39.5 million shares were traded, with 19 million shares sold at 7 sen apiece, 3.5 million shares at 8 sen apiece and the remaining 17 million shares at 10 sen apiece. The group’s share price was trading at 8.5 sen on the open market. As for Dec 6, 22 million shares were traded in three tranches at 10 sen apiece.

Based on filings with Bursa, co-founder of Oldtown Group of companies Goh Ching Mun, who first surfaced in Tiger Synergy as a substantial shareholder on Nov 8, accumulated the 19 million shares on Dec 5. He became the single largest shareholder with a 27% stake.

Filings with Bursa also show that on Dec 6, Tiger Synergy executive chairman Datuk Tan Wei Lian acquired 15 million shares via a direct business transaction. The transaction was done at 10 sen per share, which was at a 17.6% premium to its trading price of 8.5 sen.

While Tiger Synergy’s share price has fallen 46.9% from a year ago, it has rebounded from the low of 4.5 sen as at end-October. In fact, since the emergence of Goh as a substantial shareholder, the group’s share price had risen 6.3%.

At Sino Hua-An International Bhd, 54 million shares or a 4.81% stake were traded off market. Bloomberg data shows that the off-market trade was carried out on Dec 5 at 18 sen per share. Filings show that the seller was group managing director Liu Guodong, who still has 124 million shares or a 11% stake. The group’s share price has fallen 34.7% from a year ago.

Over at Magnum Bhd, 62 million shares or a 4.36% stake were traded off market at RM1.85 apiece on Dec 7 and 10. This was a 6.1% discount to its trading price on the open market. Filings with Bursa show that Asia 4D Holdings Ltd had disposed of 53.1 million shares on Dec 7 and 8.95 million shares on Dec 10. Both transactions were done through private placement.

The filing also shows that Asia 4D Holdings ceased to be a substantial shareholder of Magnum following the disposal on Dec 10. The group’s share price has risen 24.9% from a year ago, closing at RM2 last Wednesday.

Other companies that saw a significant stake traded off market included Acme Holdings Bhd (4.35%), Orion IXL Bhd (3.85%) and Halex Holdings Bhd (2.98%).


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