This article first appeared in The Edge Financial Daily, on October 29, 2015.

KUALA LUMPUR: Seremban Engineering Bhd (SEB) and its holding company Success Transformer Corp Bhd have both denied that the latter would be selling off its entire 65% stake in SEB.

Both companies told Bursa Malaysia yesterday that Success Transformer has no intention of disposing of its stake in SEB.

They were responding to an article in The Edge Financial Daily yesterday, quoting a source, that Success Transformer was disposing of its SEB stake.

Success Transformer said it had rendered additional financial and management support to SEB despite the latter’s losses in the financial year ended Dec 31, 2014, and the first half of this year.

It also stated that management had taken various steps and strategies to stabilise and revamp the loss-making SEB’s financial position, while focusing on its core business of the fabrication of process equipment, especially in the palm oil refinery, food, chemical, and waste treatment industries.

SEB, which received an unusual market activity query after its share price hit limit up on Tuesday, surging to a 52-week high of 76 sen, dropped as much as 12.5 sen or 16.45% to 63.5 sen yesterday after the company dismissed the disposal talk by its holding company.

It closed down 11.5 sen or 15.13% at 64.5 sen, after some 11.9 million shares were traded. Success Transformer, which also saw its share price rally to a multi-year high of RM2.14 on Tuesday, pared off one sen to close at RM2.13 for a market capitalisation of RM245.52 million.