KUALA LUMPUR (June 3): Canned food and beverage maker Rex Industry Bhd has surfaced as a substantial shareholder in Hwa Tai Industries Bhd, with a 5.61% stake.

Hwa Tai Industries, in a filing to Bursa Malaysia, said Penang-based Rex acquired 4.2 million shares in the company on the open market today.

The transaction price and identity of the seller were not disclosed.  

Bursa data showed that the transaction accounted for nearly 73% of Hwa Tai's open market trades today.  

The Johor-based biscuit maker's shares surged two sen or 4% to close at 52 sen, after 5.76 million shares exchanged hands. It had earlier risen to as high as 54 sen.

The stock is rarely traded, with a 65-day average volume of 180,054 shares. The current price gives it a market value of RM39.29 million.  

Hwa Tai was established in 1962 and was listed on Bursa Malaysia in 1992. It has been successfully marketed its products under the brand of "Hwa Tai" and "Luxury" both domestically and internationally, through its own vast and comprehensive distribution network.

Hwa Tai chairman Soo Thien Ming was the company's single largest shareholder, with a stake of 41.36% as at March 31.

This was followed by Heng Yong Kang with a 5.35% stake; and Teh Leong Kok's with 4.21%.

For the first quarter ended March 31, 2016, Hwa Tai posted a small profit of RM8,500, compared with a net loss of RM245,000 a year ago, due to higher margin resulting from an increase in revenue from its international market.  

Revenue was little changed at RM16.74 million, versus RM16.54 million a year ago.