Tuesday 19 Mar 2024
By
main news image

KUALA LUMPUR (March 22): Barisan Nasional component party Malaysian Chinese Association (MCA) has ceased to be a substantial shareholder of car leather upholstery maker Pecca Group Bhd after its investment vehicle Huaren Holdings Sdn Bhd disposed of 12.88 million shares on March 17.

While the transacted price was not disclosed, based on the 96 sen closing price of Pecca shares on Wednesday, the block of shares were worth RM12.36 million.

Huaren emerged as a substantial shareholder on Aug 30, 2022, when it acquired 3.68 million shares — worth about RM3.11 million based on Pecca's closing price of 84.5 sen then — and raised the number of shares it held to 38.37 million.

It then bought 4.37 million shares on Sept 1, 2022 and 4.83 million shares on Sept 2, 2022 worth a total RM7.68 million as of Pecca's closing price of 83.5 sen on those two days — which raised its interest further to 47.57 million shares representing 6.33%, according to Pecca's stock exchange filings.

Pecca's shares have gained about 12 sen or 14.2% since Aug 30.

It is not known how much Huaren paid for the shares it had held prior to emerging as a substantial shareholder of Pecca.

In total, the 12.88 million shares that Huaren acquired since Aug 30, 2022 could be worth RM10.79 million, based on the closing price of the shares on the days they were acquired. This means that Huaren might have gained 14.6% return from its investments in Pecca from Aug 30, 2022 to the disposal date.

As of Wednesday (March 22) the party via Huaren still holds 34.68 million shares representing a 4.61% stake in the group.

Pecca is controlled by MRZ Leather Holdings Sdn Bhd with a 49.47% stake. MRZ is the investment vehicle of founder and group managing director Datuk Teoh Hwa Cheng and his family.

Teoh personally has a direct interest of 3.17% in Pecca, while his wife Datin Sam Yin Thing owns a 6.74% stake.

Other substantial shareholders in the group include Lim Cheng Ling (5.82%) and the Retirement Fund Inc (KWAP) (5.14%).

Shares of Pecca closed unchanged at 96.5 sen on Wednesday (March 22), giving the company a market capitalisation of RM721.94 million.

Edited ByLam Jian Wyn & Kamarul Azhar Azmi
      Print
      Text Size
      Share