KUALA LUMPUR (Sept 10): Vsolar Group Bhd, which undertook share placements and rights issue to raise fresh capital for the renewable energy business, has spent RM15.17 million to buy minor stakes in two property development companies — Meridian Bhd and Symphony Life Bhd that was recently embroiled in a boardroom tussle after the change of major shareholders.

Vsolar said in the filings to Bursa Malaysia that the share purchases were funded entirely by internally-generated funds of Vsolar and its subsidiaries.

In a filing with the stock exchange, Vsolar, which has Fintec Global Bhd as its biggest shareholder holding a 3.28% stake, said it has acquired 32.5 million shares or a 4.31% stake in Meridian at an average price of 18 sen per share on the open market.

The share purchase, which cost RM5.92 million, was done through its wholly-owned unit CubeTech Asia Sdn Bhd between Sept 3 and Sept 6.

Meridian's core activities are property development and investment of properties, according to the filing.

"The board is of the opinion that the investment represents a good investment opportunity for Vsolar Group. The consideration paid for the investment was funded entirely by internally-generated funds of Vsolar and its subsidiaries," it said.

In a separate Bursa Malaysia filing, Vsolar announced that it has also bought 15.73 million shares or a 2.33% stake in Symphony Life at an average price of 58 sen per share. It paid a total of RM9.25 million for the stake in Symphony Life.

The share purchase was done via CubeTech Asia as well between Sept 6 and Sept 8.

"Symphony has weathered several economic downturns, survived remarkably and delivered more than 20,000 properties throughout the country. The board is of the opinion that the investment represents a good investment opportunity for Vsolar group," the company said.

To recap, Vsolar undertook two large private placements, a rights issue and several share issuance schemes to its employees between July 2020 and January this year. Its share capital swelled several folds to 4.56 billion, according to Bloomberg.

Vsolar’s website shows that it is an investment holding company which is mainly engaged in the production of renewable energy, media publishing, software solutions and related services.

Shares in Meridian gained one sen to 17.5 sen, valuing the property developer at RM133.53 million. Year to date, the stock has dropped by 55.13% from 39 sen recorded in January.

Meanwhile, shares in Symphony Life fell 0.5 sen to 57 sen, giving it a market capitalisation of RM384.43 million. The stock has dropped from this year’s peak of 84 sen in early April when Tan Sri Mohamed Azman Yahya stepped down as executive chairman after he sold most of his shareholding.  

The company’s single largest shareholder Muar Ban Lee Group Bhd (MBL) called for an extraordinary general meeting (EGM) to remove three directors and replace them with three others in August.

MBL holds an indirect 14.12% stake through Theron Holdings Sdn Bhd, and a 3.54% direct stake.  

Last week, the property developer announced the resignation of executive director Ng Ying Yiing and independent non-executive director Loi Chee Fong. On top of that, the company also announced the appointments of three directors, namely Teh Eng Aun (independent non-executive), Datuk Chua Heok Wee (non-independent executive) and Tan Sri Tan King Tai @ Tan Khoon Hai (non-independent non-executive).

Subsequently, the EGM was cancelled.

Separately, Vsolar’s share price was unchanged at 1.5 sen, valuing the company at RM68.5 million. Since the beginning of the year, the stock has fallen by 62.5%.