KUALA LUMPUR (July 10): Scanwolf Corp Bhd executive director Datuk Tan Sin Keat, who was previously suspended by the company in early June, has upped his stake in the company after acquiring 266,200 shares which represent a 0.304% interest.

The shares were acquired by his son Tan Yann Kang on July 7 for 30 sen apiece, Scanwolf revealed in a filing to Bursa Malaysia today.

After the transaction, Sin Keat has a 2.71% direct interest in Scanwolf, and 0.304% indirect interest.

Separately, independent and non-executive director Abdul Hamid Abdul Shukor acquired 287,600 shares at 28.2 sen on the same day, which represents a 0.33% direct interest.

Tan was suspended on June 2 together with financial controller Ng Chee Wai pending investigations into discrepancies found in documents pertaining to transactions conducted by its wholly-owned subsidiary, Scanwolf Plastic Industries Sdn Bhd (SPI).

Earlier today, Scanwolf’s shares rose as much as 14.3% in anticipation of a change in management following the exit of Scanwolf’s two largest shareholders, Datuk Ch'ng Kong San and David Chang, from the company.

Prior to the cessation, Chang was the single-largest shareholder with a 19.83% stake, while Ch’ng held 8.68%.

Recall that, Ch'ng was ousted as the company's managing director in the extraordinary general meeting last month. In addition, another six directors, who are said to be linked to him, were also removed from the board.

Scanwolf’s (valuation: 0.9; fundamental: 0.55) counter closed 11.11% or 3.5 sen higher at 35 sen today, after hitting a high of 36 sen earlier, with 16.43 million shares changing hands, for a market capitalisation of RM30.36 million.

A dealer who declined to be named alluded the share price rise to the anticipation of a positive development in the management.

“The company’s fundamental is alright, which is why I think it could be a result of positive development in the change in management,” said the dealer.

(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.)