KUALA LUMPUR: Datuk Raymond Chan Boon Siew (pic) has sold his entire stake of 5.03% or 38.84 million shares in Naim Indah Corp Bhd to its two other directors Datuk Siaw Swee Hin and Datin Khoo Lay Wah via a married deal in an off-market transaction.
Chan’s total disposal was transacted at 12.5 sen per share or for a total RM4.85 million.
Some 28.84 million shares or 3.73% were sold to Siaw at 12.5 sen apiece, while the remaining 10 million shares were sold to Khoo for 12.5 sen per share.
Siaw’s direct stake in Naim Indah rose to 39.17 million or a 5.07% stake, while Khoo’s indirect stake increased to 8.79% after the duo bought shares from Chan.
Currently, Chan is the chief executive officer and non-independent director of Naim Indah, which has interests in property investment and timber logging.
Khoo also controls Naim Indah via its vehicle Quantum Discovery Sdn Bhd with a 7.49% stake, according to the latest Bloomberg data.
Naim Indah is among the companies, whose share prices rocketed several folds, after Chan emerged as a substantial shareholder.
Back in February 2012, Harvest Court Industries Bhd was a star performer. The stock surged 172% in one day when Chan emerged as a substantial shareholder of the company. The stock soared from barely five sen to 73 sen in less than three months between February and early April, 2012.
Prior to that, Chan bought into Harvest Court in the fourth quarter of 2011. He subsequently awarded more than a billion ringgit worth of construction contracts to Harvest Court, which saw its share price climb from 12 sen to as high as RM2 in 2011, an increase of more than 16-fold.
Chan was reported as saying that he was injecting assets into Harvest Court to help turn around the loss-making company. Speculation was then rife that Chan could possibly do the same for Naim Indah, which has been loss-making since 2008.
However, Chan has yet to turn around Naim Indah, which is still in the red so far.
Chan once again hogged the limelight in June this year, following a tussle with new shareholder Datuk Eddie Chai of Harvest Court.
Shares in Naim Indah closed at 11.5 sen yesterday, giving it a market capitalisation of RM88.81 million.
This article first appeared in The Edge Financial Daily, on October 28, 2014.