KUALA LUMPUR (July 14): Hong Seng Consolidated Bhd, which is engaged in glove manufacturing, healthcare, financial services, and search and advertising, has emerged as a substantial shareholder of Classita Holdings Bhd, after acquiring 402.06 million shares, equivalent to a 32.61% stake, in the lingerie maker via direct business transactions.

In a filing with Bursa Malaysia on Friday (July 14), Hong Seng said it had acquired the shares off market for RM60.31 million. This works out to 15 sen apiece, based on back-of-the-envelope calculations — a 30.23% or 6.5 sen discount to Classita's Friday closing price of 21.5 sen, marking a three-month high.

At 21.5 sen, Classita settled 7.5 sen or 53.57% higher than its Thursday close, giving it a market capitalisation of RM254.85 million.

This also gives Hong Seng's stake in the company a book value of RM86.44 million.

Out of the 402.06 million shares, Hong Seng had acquired 358.75 million shares from its substantial shareholder Chan Swee Ying, who held a 24.59% stake or 303.09 million shares, and executive chairman Ng Keok Chai, who held a 4.51% stake or 55.66 million shares.

At the time of writing, it is unclear who Hong Seng had acquired the remaining 43.85 million shares from.

Following the disposal, Chan and Ng ceased to be shareholders in Classita.

In March, shareholders of Classita had approved a resolution to issue shares with warrants on the basis of two rights shares for every five shares held, at a subscription price of 10 sen each, accompanied by free detachable warrants on the basis of three warrants for every five rights shares, with an exercise price of 20 sen.

Notably, Chan had subscribed to 285.06 million rights shares while Ng took up 55.66 million shares.