KUALA LUMPUR (Sept 29): MMAG Holdings Bhd has ceased to be a major shareholder of CSH Alliance Bhd after divesting of its entire 16.61% stake in the CSH, together with 194.5 million warrants, for RM37.36 million, cash. Its original investment, made since May 2021, was RM36.5 million.

In a bourse filing, MMAG, a loss-making logistics services provider, said it was selling 229.5 million CSH Alliance shares for RM21.8 million and 194.5 million warrants B for RM15.56 million.

Prior to the disposals, MMAG was CSH’s largest shareholder, followed by ChipSeng Heng Holdings Sdn Bhd, with a 12.17% stake. It now no longer holds any more shares or warrants in CSH Alliance, also a loss-making transports and logistics services provider.

Meanwhile, a Datuk Liu Han Ming, through Sheng Dar Holding Sdn Bhd, has emerged as CSH’s new substantial shareholder, with a 16.61% stake or 229.5 million shares.

MMAG said the disposal of the 16.61% stake translates to 9.5 sen per share, representing a 46% premium from CSH’s closing price of 6.5 sen on Friday, when the counter settled half a sen or 8.3% higher, valuing it at RM89.79 million. For the warrants, the disposal price stood at eight sen each, a 6.7% premium from its closing price of 7.5 sen on Friday, when they ended 1.5 sen or 25% higher.

MMAG said proceeds raised from the disposal will be used for working capital, adding that the transaction provides an opportunity for it to realise its investment in CSH at a “reasonable” price.

Since MMAG first invested into CSH on May 20, 2021, the latter’s share price has fallen 67.5%. “Notwithstanding the disposals, through the business collaborations between MMAG and CSH, MMAG will continue to leverage on CSH’s experience and expertise for its haulage and transportation services for the middle mile logistics,” said MMAG.

CSH, which also filed the change in shareholdings to Bursa, updated the bourse that its memorandum of understanding with BYD Malaysia Sdn Bhd for electric vehicle assembly has seen no material development.

Shares of MMAG closed half sen or 33% lower at one sen, valuing it at RM24.22 million.