KUALA LUMPUR (July 9): Two largest shareholders of Scanwolf Corp Bhd, Datuk Ch'ng Kong San and David Chang, have ceased to be substantial shareholders in the company.
In a filing with Bursa Malaysia today, Scanwolf (fundamental: 0.55; valuation: 0.9) said Ch'ng, who was the second largest shareholder with an 8.68% equity stake, has disposed of all his shares on July 2.
According to the filing, Ch'ng disposed of a total of 7.534 million shares and subsequently ceased to be a substantial shareholder in the company.
It should be noted that Ch'ng emerged as substantial shareholder in Scanwolf in November last year, after acquiring some 7.534 million shares or a 10% stake in the company through a private placement.
In a separate filing, the plastic extrusions manufacturer announced that Better Project Management Sdn Bhd, which is controlled by Scanwolf's single largest shareholder David Chang, has also ceased to be a substantial shareholder in the company.
According to the filing, Better Project has sold 17.204 million shares or a 19.83% stake on July 2 this year. But the transaction price was not disclosed in the filing.
Prior to the cessation, Chang was the single-largest shareholder with a 19.83% stake.
Recall that, Ch'ng was ousted as the company's managing director in the extraordinary general meeting (EGM) last month. In addition, another six directors, who are said to be linked to him, were also removed from the board.
However, Scanwolf co-founder and substantial shareholder Datuk Tan Sin Keat, who was the only board member to turn up at today's meeting, managed to retain his seat as executive director.
Scanwolf has been in the limelight lately as there were several "possible irregularities" in the company and some subsidiaries' property development division.
On April 23, Scanwolf said it has appointed PKF Covenant Sdn Bhd to conduct an investigative review on the group's operations.
The preliminary report has revealed several "possible irregularities" in the company and some subsidiaries in the property development division.
On June 2, the company has set up a four members' Investigative Committee to investigate on the matter. The committee member include Ch'ng Kong San (group managing director), Soon Eng Kooi (executive director), Ong Sin Guan (independent non-executive director) and a representative from PKF Covenant.
It is worth pointing out that, following the cessation of Ch'ng, Soon and Ong, the investigative committee should have only one member, who is the representative from PKF Covenant.
Scanwolf share price closed unchanged today at 32 sen, for a market capitalisation of RM27.76 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.)