KUALA LUMPUR (Nov 3): Salcon Bhd's share price rose nearly 7% during early trade on Friday, after Berjaya Corp Bhd (BCorp) emerged as its substantial shareholder following a 5.43% stake acquisition, based on its stock exchange filing on Thursday.  

At 11:35am, shares of the water and wastewater engineering company rose 6.98% to 23 sen, from its last closing price of 21.5 sen. The stock had earlier risen to a high of 24.5 sen.

BCorp bought 55 million shares in Salcon, making it the third largest shareholder of the company at an undisclosed sum.  

A rough calculation, based on Salcon’s last closing price of 21.5 sen on Thursday, indicates that BCorp could have paid approximately RM11.8 million for the bloc of shares.   

In a separate bourse filing, the group said it has secured a small hydro powerplant project at the Sungai Selangor Dam worth RM64.99 million and sewer reticulation works valued at RM20.66 million from Eco Horizon Sdn Bhd.  

In addition, a consortium comprising Salcon and KAB Smart Solar Energy Sdn Bhd has been selected to develop a 7MW solar photovoltaic plant under the Energy Commission of Malaysia's corporate green power programme.  

These projects are expected to positively impact on the company's earnings and net assets, given that its financial performance has been found wanting — with the group registering a net loss of RM41.33 million for the year ended Dec 31, 2022 (FY2022). 

For the first six months of FY2023, the group’s net loss narrowed to RM1.62 million, from RM2.41 million in the first half of FY2022, despite revenue dropping 42% to RM58.81 million from RM101.48 million as its construction, healthcare, and trading and services divisions reported lower revenues.    

Currently, the largest shareholder of Salcon is its executive deputy chairman Tan Sri Tee Tiam Lee, with a direct interest of 5.785% and indirect interest of 6.761% via Infra Tropika Sdn Bhd.  

This is followed by non-independent and non-executive director Datin Goh Phaik Lynn with a 10.58% stake. 

Year to date, the stock has risen 2.5%. 

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BCorp emerges as substantial shareholder of Salcon with 5.43% stake