Sanichi Technology emerges as a substantial shareholder of BCM Alliance

Sanichi Technology emerges as a substantial shareholder of BCM Alliance
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KUALA LUMPUR (Jan 6): Sanichi Technology Bhd has emerged as a substantial shareholder of BCM Alliance Bhd, after acquiring 50.77 million shares or a 10.54% stake in the company via off-market trades.

Sanichi purchased the said stake for RM21.83 million, according to a filing with Bursa Malaysia yesterday.

In short, this means that Sanichi spent 43 sen on each share in BCM Alliance. The acquisition was funded by internally generated funds.

"The company believes the acquisition shares have the potential of strong appreciation in share price based on BCM's expected continuing profit track record and current business model," said the plastic injections mould fabrication company.

The acquisition will not have any material effect on the earnings per share, net assets per share and gearing of the Sanichi Group for the financial year ended Dec 31, 2020.

None of the directors and/or major shareholders of the company and/or persons connected to them have any interest, direct or indirect, in the acquisition.

BCM offers a wide array of maintenance services of electrical equipment, commercial laundry equipment, distribution of healthcare products and clinical devices. The company is a key distributor for many well-known and highly sought-after products such as commercial laundry equipment, medical devices, healthcare and clinical products, said in the filing.

At noon break, Sanichi's shares were half a sen or 9.09% higher at six sen, valuing it at RM120.28 million. Some 8.36 million shares were traded.

BCM's shares were down 1.5 sen or 4.69% at 30.5 sen now, giving it a market capitalisation of RM146.84 million. Some 73.73 million shares were done.

Lam Jian Wyn