This article first appeared in Capital, The Edge Malaysia Weekly on March 25, 2024 - March 31, 2024
Notable filings
For the week of March 11 to 15, notable filings at Bursa Malaysia-listed companies included those at Penang-based Oriental Holdings Bhd (OHB), where Bayview Hotel Sdn Bhd and Boontong Estates Sdn Bhd ceased to be substantial shareholders.
The diversified conglomerate has seen a series of changes in its shareholdings structure over the past weeks in line with what it says is a planned internal restructuring.
According to the group’s stock exchange filings on March 14 and 15, Bayview and Boontong — a vehicle related to Datuk Loh Kian Chong, executive chairman of OHB and grandson of the late Tan Sri Loh Boon Siew — ceased to be substantial shareholders on March 15 after disposing of 49.32 million shares and 38.9 million shares respectively.
The shares were distributed in specie to several family members, including Tan Kheng Hwee, who has been an executive director of OHB since 2015 and is Kian Chong’s cousin. Tan’s indirect shareholdings in the group rose to 6.79% via Loh Cheng Yean Holdings Sdn Bhd. Meanwhile, Kian Chong’s indirect stake in OHB, via Boon Siew Sdn Bhd, is down to 40.48% versus 58.08% in March last year. He has a 0.16% direct stake in OHB.
OHB is involved in the plastics, plantation, hotel and resorts as well as healthcare industries. Its current management comprises the third generation of the late Boon Siew. OHB’s second-largest shareholder is the Employees Provident Fund (EPF), whose stake currently stands at 5.83% compared with 7.43% earlier this year.
Elsewhere, Aurora Crest Sdn Bhd ceased to be a substantial shareholder of Hong Seng Consolidated Bhd (HSCB) after disposing of 450.53 million shares in the week under review. Aurora Crest is a vehicle controlled by Christopher Chan Hooi Guan, an executive director at HSCB. Bursa Malaysia filings show that the shares were disposed of for RM9.01 million, or two sen apiece Chan now owns an indirect 2.7% stake in HSCB, following the disposal on the open market.
HSCB, which is in the business of healthcare, financial services and glove manufacturing, recently scrapped a plan to sub-lease part of a plot of industrial land in Prai Bulk Cargo Terminal, Penang, from Penang Port Sdn Bhd, following a decision to suspend the development of a proposed nitrile butadiene latex manufacturing plant in Kedah Rubber City.
Meanwhile, HeiTech Padu Bhd saw the emergence of two new substantial shareholders in just one week in the form of MyEG Services Bhd and Datuk Farhash Wafa Salvador. MyEG acquired a 14.4% stake on March 7 for RM31.25 million as part of a strategic investment. It continues to mop up more shares on the open market, raising its stake to 15.89% as at March 13.
Farhash, who used to be Prime Minister Datuk Seri Anwar Ibrahim’s political aide and was Parti Keadilan Rakyat (PKR) Perak chief until 2022, bought 9.69 million shares on March 12 and 6.16 million shares on March 11, making him the second-largest shareholder of HeiTech Padu, with a 15.9% stake held via Rosetta Partners Sdn Bhd. He recently said his shareholding in HeiTech Padu was co-owned with Kelantan’s Sultan Muhammad V.
Notable movements
Telekom Malaysia Bhd’s (TM) share price, which has risen 24.6% over the past year to March 20, touched its highest closing in just over three years on March 16 at RM6.50.
During the week under review, several government-linked investment companies disposed of some of their shares in TM. They include AmanahRaya Trustees Bhd-Amanah Saham Bumiputera, which sold 2.5 million shares on March 12 and 13, and Retirement Fund Inc (KWAP), which disposed of a million shares on March 11.
The counter closed at RM5.96 last Wednesday, valuing the telecommunications group at RM22.87 billion.
Last month, TM reported a 4QFY2023 net profit that more than doubled to RM46.3 million from a year ago, thanks to tax credits and higher data revenue, as well as lower costs. It booked a tax credit of RM46.3 million in the quarter, as opposed to a tax expense of RM53.6 million. The group declared a dividend per share of 15.5 sen for the quarter, bringing total DPS for the year to 25 sen.
Over at IOI Properties Group Bhd (IOIPG), its share price has risen strongly this year, gaining 25.1% year to date to close at RM2.19 as at March 20, giving the company a market capitalisation of RM12.06 billion. The counter closed at its highest in more than five years on Feb 27, at RM2.34.
EPF has been accumulating shares in the group. During the week under review, the fund bought a total of 7.44 million shares, raising its stake to 6.4%.
IOIPG’s net profit for the second quarter ended Dec 31, 2023, fell 69.78% to RM121.5 million, from RM401.98 million a year earlier, amid a weaker performance by the group’s property development segment as well as its hospitality and leisure business.
For the cumulative six months, its net profit slumped 71.61% to RM295.94 million, dragged down by all business segments except property investment.
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