KUALA LUMPUR (Dec 29): Minetech Resources Bhd’s former executive chairman Datuk Awang Daud Awang Putera has ceased to be a substantial shareholder after he offloaded 245 million shares in the company on Friday.

The disposal of 245 million shares is equal to a 15.9% stake in Minetech.

Post disposal, Awang Daud is left with 3.27% equity interest or 50.42 million shares in the group, which is involved in civil engineering and construction, mainly rock drilling and blasting, as well as general civil and infrastructural work.

This came after Awang Daud resigned as Minetech's executive chairman on May 31, 2023, citing "to pursue interests in other fields".

It is worth noting that Awang Daud is the co-founder of Serba Dinamik Holdings Bhd, a financially-distressed oil and gas service company.  

Minetech did not reveal the transaction costs. Based on a back-of-envelope calculation, the 245 million shares shall see him pocketing RM37.98 million based on Minetech’s closing price of 15.5 sen on Dec 26, 2023.

Notably, Awang Daud disposed of the stake when Minetech’s share price surged and hit a 28-month high of 15.5 sen.  

The stock had been hovering below 60 sen since June last year. It started to climb higher in early this month and eventually hit 15.5 sen on Dec 26.

The counter was the fourth most active stock on the local bourse on Friday, amassing a trading volume of around 114.66 million. The number of shares changing hands dwarfed the security’s 200-day average volume of 5.96 million.

The stock closed down half a sen or 3.33% at 14.5 sen, bringing it a market capitalisation of RM223 million. Year to date, the stock has gained 164%.