Off-Market Trades:Sarawak Oil Palms, Pelikan International Corp, Sern Kou Resources, TechnoDex

This article first appeared in Capital, The Edge Malaysia Weekly, on January 28, 2019 - February 03, 2019.
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ON Jan 18, some 6.88 million Sarawak Oil Palms Bhd shares changed hands in a direct off-market transaction for RM17.89 million. At RM2.60 per share, the deal was a slight discount to the counter’s closing price of RM2.59 on that day.

The buyer was Agape International Pte Ltd, which has raised its stake to 40.13 million shares, or 7.03%, filings with Bursa Malaysia show.

Non-executive director Ling Lu Kuang is a shareholder of Agape International, previous filings show. He is the son of executive chairman Tan Sri Datuk Ling Chiong Ho.

The elder Ling is the founder of the Shin Yang Group of Companies, whose business interests span construction, property development, wood products, shipping and information technology.

According to its latest annual report, the company’s single largest shareholder is Shin Yang Plantations Sdn Bhd, a Ling family vehicle, with 28.51%. Pelita Holdings Sdn Bhd, a vehicle of the Sarawak Land Custody and Development Authority, or Pelita,  holds a 20.25% stake.

Sarawak Oil Palms had a dismal run last year but surged 32.1% between Dec 26 — when it hit a multi-year low of RM1.96 — and Jan 23, when it closed at RM2.59 per share. However, the stock remains 30.16% lower than it was a year ago.

Datuk Gan Kong Hiok surfaced as a substantial shareholder in stationery manufacturer Pelikan International Corp Bhd on Jan 16.

He acquired 2.75 million shares, or a 0.501% block, off market on that day for 33 sen apiece, a one sen discount to its closing price on that day. The purchase increased his overall stake in the company to about 5.1%.

The Gan family controls Nilai Resources Group Sdn Bhd, which was delisted from Bursa Malaysia in late 2012. According to its website, Nilai Resources is in the property development, hospitality and education businesses, among others.

The largest shareholder in Pelikan is Urusharta Jamaah Sdn Bhd, with 28.66%, followed by president and CEO Loo Hooi Keat with 10.14%. Urusharta Jamaah is a finance ministry vehicle set up to take over underperforming assets and equity holdings from Lembaga Tabung Haji.

Over the past one year, Pelikan’s share price has fallen 57.83%. It closed at 35 sen on Jan 23.

Meanwhile, Sern Kou Resources Bhd saw seven million shares traded off market in blocks of at least 495,000 shares on Jan 17 and 18. Data shows that the transacted price was 51 sen per share, valuing the block at RM3.57 million.

The buyer was managing director Low Peng Sian @ Chua Peng Sian, who increased his direct shareholding to 30.94 million, or 12.89%. Overall, his direct and indirect interests in the Muar-based furniture manufacturer come to 32.89%.

Low has been increasing his direct stake since March last year, according to previous filings with Bursa Malaysia. At the beginning of last year, he held 8.92% equity interest directly, meaning that he has increased his direct shareholding by 20.24 million shares (3.97%) in the past 11 months.

Last Wednesday, Sern Kou closed at 56 sen, down 30.43% over the past 12 months.

TechnoDex Bhd saw 7.5 million shares or a 2.97% block sold off market on Jan 17. At 15 sen apiece, the transactions valued the block at RM2.63 million.

 A total of 25 million TechnoDex shares were traded off market on that day, representing a 4.23% stake.

A Jan 18 Bursa filing shows that 12.5 million shares were acquired by non-executive director Chang Choon Ming, raising his stake to 3.78%. Chang is also a non-executive director at Connect County Holdings Bhd. At the time of writing, it was unclear who had bought the remaining shares. Last Wednesday, TechnoDex closed at 12 sen, down 14.81% over the past year.
 

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