KUALA LUMPUR (Dec 5): Morgan Stanley has picked up an additional 1.65 million shares of Jentayu Sustainables Bhd to emerge as a substantial shareholder in the sustainable energy solutions provider with a deemed interest of 5.049%.

A bourse filing on Monday showed that Morgan Stanley now has a deemed interest of 21.22 million shares following the acquisition on Nov 30, up from 19.57 million shares or a stake of 4.7% prior to the transaction. With Morgan Stanley's emergence, Mitsubishi UFJ Financial Group Inc (MUFG), which holds more than 20% interest in Morgan Stanley, also emerged as a substantial shareholder with the same deemed interest.

Based on a back-of-the-envelope calculation, the 1.65 million shares might have cost Morgan Staley RM2.01 million — based on Jentayu’s closing price of RM1.22 on Nov 30. 

Morgan Stanley's increased stake in Jentayu was "in respect of which Morgan Stanley may exercise its right to rehypothecate or dispose of the shares on Nov 30. 2023", the filing read.

Meanwhile, Morgan Stanley — and likewise MUFG — ceased to be a substantial shareholder of Trive Property Group Bhd on the same day (Nov 30), after it offloaded its entire shareholding of 142.90 million shares or an 11.31% stake in the company. Morgan Stanley acquired those entire shares on Nov 27.

Based on a back-of-envelope calculation, it is estimated Morgan Stanley received RM8.57 million from its stake disposal in Trive Property, based on the closing price of six sen on Nov 30.

Trive Property’s share price closed unchanged at six sen, translating into a market capitalisation of RM76 million.

Jentayu’s shares settled two sen or 1.61% lower at RM1.22 on Monday for a market capitalisation of RM513 million. Year to date, Jentayu's share price has jumped 68%, while Trive Property's has fallen 14%.