This article first appeared in Capital, The Edge Malaysia Weekly, on December 7 - 13, 2015.
SOME 1.54 billion shares worth RM427 million were traded off market in blocks of at least 500,000 shares from Nov 25 to Dec 1. The more notable transactions included the disposal of 25.4 million shares or a 17.5% stake in PRG Holdings Bhd.
According to PRG’s announcement to Bursa Malaysia on Dec 1, the company’s substantial shareholder, Datuk Seri Yeoh Soo Ann, disposed of the shares at 80 sen apiece or RM20.3 million in total on Nov 30. The disposal price was just above the 79.5 sen the stock fetched on the open market at the time. Yeoh also resigned as an executive director of the furniture webbing manufacturer-cum-property developer on the same day.
Yeoh is the group CEO of Encorp Bhd (fundamental: 0.45; valuation: 1.10). PRG (fundamental: 1.10; valuation: 1.40) was formerly known as Furniweb Industrial Products Bhd.
In the nine months ended Sept 30, PRG made a net profit of RM2.79 million — an increase of more than 10 times over a one-year period. Besides property development, the company is also diversifying into construction.
On Nov 26, Yen Global Bhd saw its substantial shareholder, Kwan Siu Cheung, dispose of 20 million shares or a 16% stake at 35.5 sen apiece or RM7.1 million in total. The price was at a 18.3% to 25.4% discount to the 42 sen to 44.5 sen apiece the shares fetched on the open market that day.
After the disposal, Kwan ceased to be a substantial shareholder of the apparel manufacturer, wholesaler and retailer.
For the year ended July 31, Yen Global’s (fundamental: 0.35; valuation: 0.30) net loss widened to RM9.79 million from RM8.96 million in the previous financial year, despite its pre-tax loss narrowing to RM4.6 million from RM10.4 million.
According to news reports, Malakoff Corp Bhd saw its pre-initial public offering investors dispose of 286.37 million shares or a 5.7% stake in the independent power producer. The investors include Standard Chartered IL&FS Asia Infrastructure Growth Fund and SEASAF Power Sdn Bhd.
GlobalCapital, a Euromoney Institutional Investor PLC publication, states that the investors sold the shares at RM443.88 million or RM1.55 apiece after the moratorium on Malakoff’s shares ended in early November. The shares were sold at a 2.5% discount to the price they fetched on the open market at the time, which was RM1.59 apiece.
Kanad Singh Virk, managing director of Standard Chartered Private Equity Ltd and co-CEO of Standard Chartered IL&FS Asia Infrastructure Growth Fund, resigned from the board of Malakoff (fundamental: NA; valuation: NA) on Nov 30. He had been a non-executive, non-independent director.
Magni-Tech Industries Bhd (fundamental: 2.80; valuation: 2.10) saw 4.35 million shares or a 2.67% stake transacted off market on Nov 25 at RM3.63 apiece. The garment and packaging manufacturer announced that Tan Sri Tan Kok Ping purchased two million shares on Nov 20 through off-market transactions.
On Nov 25 and 26, Acoustech Bhd (fundamental: 2.50; valuation: 0.50) saw 2.4 million shares or 1.43% equity interest traded off market at 62 sen apiece. Another 1.99 million shares or a 1.19% stake were transacted off market at 66 sen apiece on Dec 1.
According to Acoustech’s announcement to Bursa on Nov 24, Shih Chao Yuan disposed of 1.85 million shares on Nov 23 via a married deal. The Taiwanese also sold 1.44 million shares on Dec 2. He holds a 27.6% stake in the audio speaker systems manufacturer as at Dec 2.
At port operator NCB Holdings Bhd, MMC Port Holdings Sdn Bhd — a subsidiary of MMC Corp Bhd — acquired 251.2 million shares or a 53.4% stake in the company from Permodalan Nasional Bhd and AmanahRaya Trustees Bhd at RM4.40 apiece or RM1.1 billion in total.
MMC (fundamental: 0.95; valuation: 2.40) is in the midst of privatising the Northport operator of Port Klang. With the acquisition, MMC now owns 83.55% equity interest in NCB (fundamental: 2.05; valuation: 1.40). The conglomerate will have to extend the offer to all the remaining shareholders of NCB.
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. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.
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