This article first appeared in The Edge Financial Daily on March 25, 2020

KUALA LUMPUR: Amazing Parade Sdn Bhd (APSB), the private vehicle controlled by Datuk Tee Eng Ho and his brother Tee Eng Seng, has raised its stake in property developer Eastern & Oriental Bhd (E&O) and emerged the single largest shareholder.

According to a filing with Bursa Malaysia, APSB bought an additional 12.69 million shares in Penang-based E&O on the open market last Friday, bringing the Tee brothers’ total deemed interest in the property firm to 14.83%.

The share purchase took place when E&O’s share price was declining. The property firm’s stock has plunged 46% year to date. It closed unchanged yesterday at 33.5 sen or 0.26 times its book value.

APSB is the second-largest shareholder of E&O after Datuk Seri Terry Tham, with an 18.84% shareholding as at June 28, 2019.

Sime Darby Bhd holds a 10.88% stake, followed by businessman Tan Sri Wan Azmi Wan Hamzah, who took up a 9.09% stake via a private placement of new shares for RM127.6 million.

Eng Ho currently sits on E&O’s board as a non-independent non-executive director.

Last month, E&O returned to profitability, posting a net profit of RM18.76 million for the third financial quarter ended Dec 31, 2019, helped by an unrealised foreign exchange gain of RM23.1 million during the quarter.

However, its quarterly revenue slid 54% to RM119.15 million from RM256.95 million a year earlier, amid lower contributions from its property and hospitality segments.

For the cumulative nine-month period, its net profit dropped 66% to RM8.09 million from RM237 million a year earlier, while revenue declined 39% to RM390.57 million from RM636.34 million.