KUALA LUMPUR (Feb 15): APB Resources Bhd, which makes design process equipment, said on Thursday it has completed a RM140 million purchase of a 10.37% stake in Penang-based semiconductor firm Globetronics Bhd.
The transaction marks the Ng family’s exit from the company co-founded by its patriarch Michael Ng Kweng Chong in 1991. APB Resources acquired 46.31 million shares in Globetronics from General Produce Agency Sdn Bhd and another 23.69 million shares from Ng Kweng Chong Holdings Sdn Bhd following the agreement signed on Dec 18 last year.
Both General Produce Agency and Ng Kweng Chong Holdings are investment vehicles owned by the Ng family. Bloomberg data showed that both the 46.31 million and 23.69 million share blocks were traded at RM2 apiece, totalling RM140 million.
At RM2 per share, the price tag represented a 16.3% premium to Dec 18's close of RM1.72 and a 36.1% premium to Feb 14's close of RM1.47.
APB Resources previously described the move to invest in Globetronics as “strategic and timely” to bank on the growth of the electrical and electronics market in Malaysia.
Employees Provident Fund is still the largest shareholder in Globetronics with a 13.44% stake while Lembaga Tabung Haji has 5.36% in the company.
On Feb 7, Ng ceased to be a substantial shareholder of the company after disposing of 6.08 million shares at RM1.70 apiece for RM10.33 million.
Another 6.98 million shares held by Ng family members or related vehicles were also disposed of on the same day, including Wiserite Sdn Bhd, Glencare Sdn Bhd, Globetronics executive chairman Ng Kok Yu, chief financial officer Ng Kok Choon and non-independent non-executive director Ng Kok Khuan.
On Feb 7, a total of 19.86 million shares in Globetronics changed hands at RM1.70 for a transaction value of RM33.77 million, according to Bloomberg data.
A day after, Globetronics named three new members to its board, namely executive directors Liaw Way Gian, Kang Wei Luen, and Ku Chong Hong.
All three appointees also currently hold directorships in APB Resources, Artroniq Bhd, and Sarawak Consolidated Industries Bhd. The counters of these companies faced heavy selling pressure in January.
Shares in Globetronics ended four sen or 2.72% higher at RM1.51, giving the company a market capitalisation of RM1.02 billion. Meanwhile, APB Resources closed three sen or 1.5% lower at RM1.97, valuing the company at RM222.36 million.