Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Mar 16): Sultan Ibrahim of Johor has emerged as the single largest shareholder in REDtone International Bhd with a 20.13% stake, following conversion of his  warrants and irredeemable convertible unsecured loan stocks (ICULS) to ordinary shares, and the purchase of shares from the market.

In a Bursa Malaysia filing this evening, REDtone (fundamental: 2.3; valuation: 0.3) said Sultan Ibrahim had acquired 74.6 million shares in the integrated telecommunications solutions provider via a married deal.

According to a statement by the company, the Sultan had been steadily accumulating shares over the past one year.

Prior to the warrants and ICULS conversion, he held a 4.8% stake in REDtone.

REDtone chairman Datuk Seri Syed Ali welcomed the Johor Sultan as a substantial shareholder, calling it a vote of confidence in the management, company and its future prospects.

"The group has done well, having posted three consecutive years of profit since FY12. With a major shareholder of Tuanku’s stature, REDtone’s position in the telco industry will be further strengthened,” he said in the statement.

"All four of REDtone’s key businesses are growing well. Backed by our strong core competencies, we now hope to be able to further expand our business in the state of Johor to capitalize on the robust growth there and at the same time play a significant role to assist in the creation of more employment opportunities in the state," he added.

Following the conversion of REDtone warrants which expired on March 4 2015, its enlarged share capital now stands at over RM66.8 million, comprising 668 million shares of 10 sen per share.

For FY14, REDtone posted a revenue of RM141.76 million with pre-tax profit of RM27.42 million.

REDtone shares closed 0.5 sen or 0.61% higher at 83 sen for a market capitalisation of RM545.58 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

      Print
      Text Size
      Share