KUALA LUMPUR (Sept 24): The Employees Provident Fund (EPF) said today it is not able to comment on its investment transactions in Singapore-listed glove maker Riverstone Holdings Ltd after the EPF trimmed its Riverstone stake for the first time on record to below 7% on Monday (Sept 20, 2021) following the sale of Riverstone shares at S$1.01 (about RM3.13) each which is significantly lower than the S$3.29 a share the EPF paid when it bought the stock on Sept 17, 2020.
"Thank you for your query. Unfortunately, we are not able to comment on our investment transactions.
"Our sincere apologies for this,” the EPF said in an emailed statement to theedgemarkets.com today.
theedgemarkets.com had yesterday (Sept 23) written to the EPF to seek its response on why it sold Riverstone shares at S$1.01 each on Monday (Sept 20, 2021) when it disposed of 284,900 Riverstone shares for S$287,207.69 on the open market.
Calculations by theedgemarkets.com show that the sale of the 284,900 Riverstone shares for S$287,207.69 on Monday (Sept 20, 2021) translated into a selling price per share of S$1.01.
Riverstone’s share price closed at S$1 on that day.
On Sept 17, 2020, the EPF's acquisition of two million shares for S$6.58 million translated into an acquisition price per share of S$3.29.
Based on Riverstone's Singapore Exchange filings, the EPF is believed to have emerged as a substantial shareholder in the company on Sept 17, 2020 when it raised its direct interest in Riverstone to 5.13% comprising 38.09 million shares after the EPF acquired the two million shares for S$6.58 million on the open market on that day.
The transaction happened before Riverstone’s share price was adjusted as the stock was traded ex-bonus issue in conjunction with the company’s bonus issue of 742.45 million new shares.
Riverstone had on Aug 18, 2020 announced that the company had proposed a bonus issue of 742.45 million new shares on the basis of one bonus share for one existing share held.
On Nov 18, 2020, Riverstone said the 742.45 million bonus shares comprising 741.08 million new shares and 1.37 million treasury shares had been allotted and issued on Nov 17, 2020 to shareholders whose names appeared in the share transfer books and register of members of the company as at the record date on Nov 10, 2020 at 5pm.
Riverstone said the bonus shares were listed and quoted on the Singapore Exchange with effect from 9am on Nov 19, 2020.
After the share price adjustment, Riverstone’s Sept 17, 2020 theoretical ex-bonus issue share price closed at S$1.64.