This article first appeared in The Edge Malaysia Weekly on July 10, 2023 - July 16, 2023
The slew of shareholding changes in BTM Resources Bhd suggest that there is more to come.
Last week, BTM saw the emergence of two corporate figures as its substantial shareholders. Koh Poh Seng of KPS Consortium Bhd and William Hon of Bioalpha Holdings Bhd now own 13.1% and 7.6% respectively of the company, which is principally involved in logging and sawmilling operations.
The major shareholder and founder of BTM, Datuk Seri Yong Tu Sang, who holds a stake of almost 30% directly and indirectly, did not dispose of any of his shares.
His daughter Emmy Yong reduced her stake marginally, however, and executive director Datuk Wong Thin Choy disposed of about 3.2% of his interest in the company. Both Emmy and Wong still have significant stakes in BTM but are no longer substantial shareholders, as their interests have dropped to less than 5%.
Modern Mode Sdn Bhd, which used to hold 7.8% of BTM, is also no longer a substantial shareholder after divesting its entire stake.
BTM has been in the red for the past few years and is in the process of diversifying into the biomass renewable energy business. The single-largest block is held by Proven Venture Capital Plt, which has an interest of 11.6%.
Tu Sang, 76, and his family are very much involved in the business of BTM. His son and daughter are on the board of the company, which he started 50 years ago. To diversify away from its core business of logging and sawmilling, BTM has ventured into biomass energy business with the mandate to build and operate two small power plants.
Why would Hon and Koh acquire substantial stakes in BTM? There is very little synergy that Bioalpha and KPS can draw from BTM.
The only common element is that KPS trades wooden doors as part of its diversified business. But that does not justify taking a substantial stake in BTM, which is into sawmilling.
So, what is Koh and Hon’s game plan?
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