KUALA LUMPUR (Dec 8): RHB Group founder Tan Sri Abdul Rashid Hussain has upped his stake in Priceworth International Bhd to 6.27%, after buying an additional 15 million shares or 1.56% via a private placement.

According to Priceworth executive director Richard Koo, Rashid has taken up just over half of the first tranche of the private placement offering, involving 28.86 million new shares or 3% of the group's enlarged share capital, at 22.5 sen each.

The remaining 13.8 million placement shares were taken up by a local institutional fund, Koo said in a statement today.

Rashid, who was instrumental in the merger of Kwong Yik Bank Bhd and DCB Bank Bhd to form RHB Banking Group back in 1997, held 45.2 million shares or a 4.92% direct stake in the timber product manufacturer as at Sept 25 this year, according to Priceworth’s annual report for the financial year ended June 30, 2017. Rashid's wife Puan Sri Emilahani Yang Mohd Yatim owned another 25.42 million shares or 2.77% of Priceworth’s shares.

Priceworth is acquiring the 88,820ha Forest Management Unit No 5 (FMU5) in Sabah’s Trus Madi forest reserve, with rights to manage, replant and harvest the area for the next 80 years. The group had proposed to acquire FMU5 for RM260 million through its Singapore subsidiary GSR Pte Ltd from Transkripsi Pintar Sdn Bhd.

“A Singapore-listing is being planned for GSR, which has also proposed to acquire sister company Sinora Sdn Bhd, which is Priceworth’s plywood manufacturing arm,” it said.

In September, Priceworth began harvesting two compartments in FMU5 following approval from the Sabah Forestry Department.

Last month, FMU5 was valued at RM448.9 million by an independent valuer, following the Sabah Forestry Department’s approval of the third Forest Management Plan for the 10-year period from 2017 to 2027.

Priceworth shares fell 0.5 sen or 2.13% to close at 23 sen today, giving it a market capitalisation of RM201.98 million. Year-to-date, the counter has doubled from just 11 sen on Dec 29 last year.